Exhibit 20 -Refer to Exhibit 20

question 97

Multiple Choice

Exhibit 20.7
Use the Information Below for the Following Problem(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.
$$\begin{array} { c c c } \text { Exprcisp Price } & \text { Put Price } & \text { Call Price } \\\$ 45 & \$ 1.50 & \$ 6.75 \\\$ 50 & \$ 3.75 & \$ 4.25\end{array}$$
-Refer to Exhibit 20.7.The intrinsic value for the call option with a $45 exercise price is

• A) $0.00
• B) $1.50
• C) $5.00
• D) $5.25
• E) $6.75

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Definitions:

Pocahontas

A Native American woman notable for her association with the colonial settlement at Jamestown, Virginia, and her role in fostering peace between English settlers and Native Americans.

Dysentery

An infectious disease characterized by severe diarrhea with blood and mucus, often caused by bacteria or parasites.

Tobacco Cultivation

The agricultural practice of growing and harvesting tobacco plants, historically significant to the economy of several US colonies.

Virginia Company

The Virginia Company was an English joint-stock company established in the early 17th century that founded and provided early governance for the Jamestown settlement in North America.