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Determine the time value of the option at april

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Question - On April 1, 2020, TNT Corp. purchases a call option for $ 500 which gives TNT the right to buy 1,000 shares of XYZ Inc. for $ 55 each until December 1. 2020. XYZ Inc. shares are currently trading for $ 50. At June 30, 2020, the options are trading at $ 4,800 and the shares at $ 52 each. At December 1, 2020, the options expire with no value.

Determine the time value of the option at April 1, 2020?

1. $0.

2. $500.

3. $4,800.

4. $30.000.

Reference no: EM133175240

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