Question

Id	365
Number	5
Description	VFO is considering a sold call strategy to generate income from the sale of a call. In your scenario analysis of the sold call option alternative, VFO has asked you to value the call option in three months’ time if Biomian’s spot price is INR 325 per share. Given an estimated call price of INR 46.41 at that time, which of the following correctly reflects the relationship between the call’s exercise value and its time value?