You Own Two Put Option Contracts on Magpie Stock with an Exercise

question 386

Multiple Choice

You own two put option contracts on Magpie stock with an exercise price of $37.50. What is the total intrinsic value of these contracts if the stock is currently selling for $35.90 a share?

• A) -$320
• B) -$160
• C) $0
• D) $160
• E) $320

---

Definitions:

Craft Workers

Skilled laborers who produce goods by hand through the use of tools, often associated with artisanal and traditional forms of making.

Strikes

Work stoppages caused by the mass refusal of employees to work, usually in protest against employment conditions, labor practices, or wage levels.

1830S

A decade that often denotes a period of significant historical events, including movements for independence in Latin America and the start of the era known as the Victorian Era in Britain.

Unions

Organizations formed by workers to advocate for their rights and interests.