If an option's intrinsic value is $280 and its market price is $350, what is the time value of the option?

World Stock Markets MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
World Stock Marketsfinance-mcqs › world-stock-markets
Published
13 May 2023
Last updated
28 May 2026

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Explanation

The time value of an option is calculated by subtracting the intrinsic value from the option's price. Here, $350 - $280 equals $70.

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