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Calculate the time value of call option contract

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Reference no: EM132618198

Suppose the current spot rate for the Australian dollar is USD 0.7512 (USD per AUD). An AUD 50,000 call option with an exercise price of USD 0.7233 is traded at USD 0.045 (USD per AUD) option premium. Calculate the time value (in USD) of this call option contract.

Reference no: EM132618198

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