ICMA Exam FMFQ Topic 3 Question 50 Discussion

Actual exam question for ICMA's FMFQ exam

Question #: 50
Topic #: 3

You hold a call option on a stock with a strike of EUR 35. The current premium for this option is EUR 3.80 and the underlying stock is trading at EUR 32. How much of this option price represents time value?

ANone as the option is in-the-money

BEUR 3.80

CEUR 3.00

DEUR 0.80

Show Suggested Answer

Suggested Answer: B

by Kristeen at Feb 09, 2024, 12:54 AM

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Laticia

5 months ago

So, the correct answer would be D) EUR 0.80.

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Gladis

5 months ago

I agree, the time value is the option premium minus the intrinsic value, which is EUR 3.00 in this case.

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Scarlet

6 months ago

I believe the time value would be EUR 0.80.

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Herminia

6 months ago

I think it's about the time value of the option.

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Destiny

7 months ago

What do you think about the question on the exam about the call option premium?

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