A three-month call option with a strike price of 30 is
A three-month call option with a strike price of $30 is currently selling for $4 when the price of the underlying stock is selling for $32.
a) What is the call's intrinsic value?
b) What is the time premium?
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Watch "RSA ANIMATE: The Power of Outrospection" on the RSA YouTubeTM video community channel. A transcript is available.