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13. A 6-month call option on a stock has a strike price = $48. Its current stock price=$45. What is the exercise value (intrinsic value)

13. A 6-month call option on a stock has a strike price = $48. Its current stock price=$45. What is the exercise value (intrinsic value) of the option (hint: exercise value=max(market price - strike price, 0)? a. $3.00 b. $-3.00 c. $0 d. $5.00

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