Mike buys a call option with a strike price of $50 and an option premium of $5,

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Mike buys a call option with a strike price of $50 and an option premium of $5, when the stock is trading at $48. Which of the following statements is true?

a. The call option is in the money

b. The time value is $3

c. The time value is $5

d. The intrinsic value is $2

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1014 Practice Questions For The New GRE

ISBN: 9780375429682

2nd Edition

Authors: The Princeton Review

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Posted Date: Dec 17, 2023 03:57 AM

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Mike buys a call option with a strike price of $50 and an option premium of $5,

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1014 Practice Questions For The New GRE

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