John and Randy Form a Company with Assets Worth $900

question 380

Multiple Choice

John and Randy form a company with assets worth $900. They each have four shares of stock. Randy gives Cheri a call option on one share of stock. The option has an exercise price of $100 and expires in one year. In one year, the firm's assets are worth $1,000 and Cheri exercises the option. What is the intrinsic value of the option at maturity?

• A) $0
• B) $25
• C) $50
• D) $150
• E) $200

---

Definitions:

Résumé Formats

Different styles and structures used for organizing and presenting information on a job applicant's résumé.

Compatibility

The ability of systems, devices, or materials to work together in harmony without conflict or error.

Résumé Format

The layout and structure of a resume, including the organization of information such as work experience, education, and skills to present to potential employers.

Career Path

The trajectory of employment positions a person undertakes throughout their career, often reflecting progression in a particular sector or field.