The fair market value of a near-month call option with a strike price of $45 is $5, when the stock is trading at $48.Based on the preceding information, which of the following is true of the intrinsic and time values associated with this option. Intrinsic Value Time Value A)$5 $0 B)$0 $5 C)$3 $2 D)$2 $3
A. Option A
B. Option B
C. Option C
D. Option D
Answer: C
Business
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