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Calculate the time value of call option on company x stock

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Reference no: EM132773571

Problem 1: Given the following information, calculate the time value of the call option on Company X's stock:

Current stock price of X's stock: $20

Strike price of the call option on X's stock (expires in 6 months): $12

Market price of 6-month option on X's stock: $10

Group of answer choices

Option 1: $5

Option 2: $4

Option 3: $3

Option 4: $10

Option 5: $2

Reference no: EM132773571

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