What is the time value of one dm call option

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Question 1: Suppose it is May 1998 and the current spot rate for the DM is $0.5925. The call premium on a call option with an exercise price of $0.5675 is $0.0373. What is the time value of one DM 62,500 call option?

Select one:

Option a. $768.75

Option b. $2,331.25

Option c. $950.00

Option d. none of the above

Option e. $1,562.50

Reference no: EM132512791

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