Final answer:
The time value of the call option on Bell Canada shares, which are trading at $30.46 with a strike price of $28.67, is $5.89.
Step-by-step explanation:
The time value of an option is the portion of the option's price that exceeds the intrinsic value. Intrinsic value is the difference between the current price of the underlying asset and the strike price of the option, if this difference is positive. Since the current price of Bell Canada shares is $30.46 and the strike price of the call options is $28.67, we calculate the intrinsic value as $30.46 - $28.67 = $1.79. Since the call options are trading for $7.68, we subtract the intrinsic value from the option's price to find the time value: $7.68 - $1.79 = $5.89. Thus, the time value of the call option is $5.89.