You Own Four Call Option Contracts on Webster South Stock

question 253

Multiple Choice

You own four call option contracts on Webster South stock with a strike price of $17.50. When you purchased the shares the option price was $.85 and the stock price was $16.90. What is the intrinsic value of your investment if Webster is currently selling for $16.40 a share?

• A) -$440
• B) -$240
• C) $0
• D) $240
• E) $440

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Definitions:

Agreeableness

A personality trait in the Big Five personality model characterized by qualities such as kindness, warmth, cooperation, and empathy towards others.

Dimensional Approach

A method of understanding mental health disorders by considering them on a continuum or spectrum rather than categorizing them as either present or absent.

DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a comprehensive classification system for mental disorders used by healthcare professionals.

Negative Affectivity

is a personality trait involving the experience of negative emotions and poor self-concept.