If we have a stock selling for $95.00 and a call option for this stock has a strike price of $82.00 and an option price of $13.60:
A. the intrinsic value is $0 since the option is out of the money.
B. the intrinsic value of the option is $13.00 and the time value of the option is $0.60.
C. the intrinsic value is $82.00 and the time value of the option is $13.60.
D. the intrinsic value of the option is $0.60 and the time value of the option is $13.00.
Answer: B
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