ICMA Exam FMFQ Topic 1 Question 52 Discussion

Actual exam question for ICMA's Financial Markets Foundation Qualification exam

Question #: 52
Topic #: 1

[All Financial Markets Foundation Qualification Questions]

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 Kristel at Mar 19, 2024, 07:34 PM

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Arthur

1 days ago

I agree, we need to calculate how much of the option price is time value.

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Gracia

2 days ago

I think the question is about time value of options.

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