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Company ABCs stock is trading at $10 per share and the strike price of an option that expires in six months is $7, and the

Company ABCs stock is trading at $10 per share and the strike price of an option that expires in six months is $7, and the option is trading at a price of $3.60. What is the time value of the option?

$2.00

$1.80

$3.00

$0.60

$4.73

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