What Is the Intrinsic Value of the August 25 Call

question 69

Multiple Choice

What is the intrinsic value of the August 25 call? $$\begin{array}{l}\text { KNJ (KNJ) Underlying share price: } 30.86\\\begin{array} { | l | l | l | l | } \hline & & \text { Call } & \text { Put } \\\hline \text { Expiration } & \text { Strike } & \text { Last } & \text { Last } \\\hline \text { Aug } & 25 & 6.15 & .05 \\\hline \text { Nov } & 25 & 6.60 & 10 \\\hline \text { Aug } & 35 & 10 & 4.60 \\\hline \text { Nov } & 35 & 70 & 5.10 \\\hline\end{array}\end{array}$$

• A)€0.10
• B)€5.86
• C)€6.15
• D)€10.00
• E)€25.00

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Definitions:

OPEC

The Organization of the Petroleum Exporting Countries, an intergovernmental organization of oil-exporting countries that coordinates and unifies petroleum policies among Member Countries.

Quadrupled

To increase or be increased fourfold.

Misery Index

An economic indicator that adds the unemployment rate to the inflation rate, purportedly to measure the health of an economy and the discomfort it may cause its citizens.

Rapidly

Describes something happening in a fast or quick manner.