An American-Style Call Option with Six Months to Maturity Has

question 84

Multiple Choice

An American-style call option with six months to maturity has a strike price of $44. The underlying stock now sells for $50. The call premium is $14. What is the intrinsic value of the call?

• A) $12
• B) $10
• C) $6
• D) $23

---

Definitions:

Substance Abuse

the harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Consultants

Professionals who provide expert advice in a particular area or specialty, helping organizations or individuals make informed decisions.

Special Expertise

A high level of knowledge or skill in a particular area, often acquired through extensive training or experience.

Other Professions

Encompasses careers or fields outside of the one being primarily discussed or focused on, highlighting the diversity in professional sectors.