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Basic Question 8 of 11

Kris takes a long position in a call option having an exercise price of $55.00 for $1.40. What will be the most likely value of the call option on the same underlying having an exercise price of $50.00?

A. $3.40
B. $1.40
C. $0.70

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain the exercise value, moneyness, and time value of an option

CFA® 2024 Level I Curriculum, Volume 5, Module 8.