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1. What is the time value (speculative premium) at the time of purchase (t = 0) to the holder of a call with strike price

1. What is the time value (speculative premium) at the time of purchase (t = 0) to the holder of a call with strike price $120 if the underlying asset is $125 and the call premium is $10?

a. 0

b.5

c.10

d.15

e.20

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