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QUESTION 44 Assume that a call option has an exercise price of $1.50/. At a spot price of $1.55/, the call option has: a. a

QUESTION 44

Assume that a call option has an exercise price of $1.50/. At a spot price of $1.55/, the call option has:

a. a time value of $0.00.

b. an intrinsic value of $0.05.

c. an intrinsic value of $0.00.

d. a time value of $0.05.

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