What is the time value of call option

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1. What is the time value of a call option costing $6 with a strike price of $32 and a spot price of $36?

2. What is the risk-free arbitrage profit available if a one-year option pair has a strike price of $60, a spot price of $62, a call premium of $5, a put premium of $2, and a risk-free rate of 4%?

Reference no: EM132054503

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