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- Subject
- World Stock Marketsfinance-mcqs › world-stock-markets
- Published
- 13 May 2023
- Last updated
- 28 May 2026
An option has an intrinsic value of $450 and is currently priced at $560. What is the option's time value?
Multiple choice question for World Stock Markets. Select an option, then review the explanation below.
Explanation
The time value of an option is calculated by subtracting its intrinsic value from the option's price. Here, $560 - $450 equals $110.
More World Stock Markets MCQs
Practice related questions from the same subject.
- 1.Which contract type requires the instant transfer of money and assets?
- 2.If a stock is purchased at $35, sold at $30, and pays a dividend of $6, what is the return on the stock?
- 3.If the total gross proceeds from stock sales amount to $37,000 and the underwriter's fee is $25,000, what is the net amount received?
- 4.What is the intrinsic value of a call option?
- 5.Which type of market efficiency suggests that current stock prices incorporate all past trading data and price history of a company?