Question: S = 55, X = 45, r = 1%, T = 6 months, and Sigma = 0.2. The time premium for the call option is______.

S = 55, X = 45, r = 1%, T = 6 months, and Sigma = 0.2. The time premium for the call option is______.

a.

$10.00
b.

$10.45
c.

$0.45
d.

$0.00
e.

-$0.45

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