A 6-Month Put Option on Smith Corp

question 34

Multiple Choice

A 6-month put option on Smith Corp.'s stock has a strike price of $45 and sells in the market for $8.90.Smith's current stock price is $41.What is the option premium?

• A)$4.41
• B)$4.90
• C)$5.39
• D)$5.93
• E)$6.52

---

Definitions:

Heider And Simmel

Refers to a seminal experiment in social psychology by Fritz Heider and Marianne Simmel, which explored the inclination of viewers to attribute social motives and emotions to geometric shapes.

Intentional Actions

Actions that are performed with a specific purpose or goal in mind, reflecting a level of consciousness and planning by the individual.

Film Clip

A short extract from a movie or a video used for illustration or promotional purposes.

Causal Attribution

The process by which individuals determine the causes of events or behaviors, attributing them to internal dispositions or external situations.