What are the intrinsic value and time value components of


A call option on ABC with a 50 strike price and an expiration 90 days from now is priced at $7.50, while the underlying shares are priced at $55. Is the option in the money, at the money, or out of the money? What are the intrinsic value and time value components of the options price?

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Financial Management: What are the intrinsic value and time value components of
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