Examveda
Examveda

Intrinsic value of option is $280 and price of option is $350 then time value of option is

A. $125

B. $135.00

C. $280

D. $70

Answer: Option D

Solution(By Examveda Team)

Time value of option = Price of option - Intrinsic value of option
= $350 - $280 = $70.

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