Last Week, You Purchased a Call Option on Denver at an Option

question 78

Multiple Choice

Last week, you purchased a call option on Denver at an option price of €1.05.The share price last week was €28.10.The strike price is €27.50.What is the intrinsic value per share if Denver is
Currently priced at €29.03?

• A)-€1.05
• B)€0
• C)€.48
• D)€.93
• E)€1.53

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Definitions:

Learned Needs Theory

A theory suggesting that individuals' needs are acquired over time based on their life experiences, affecting motivation and behavior in organizations.

Personalized Power

This refers to power used for personal gain, often without regard for others, focusing on self-centered objectives.

Expectancy Theory

A theory in motivational psychology that describes the motivational force as a function of an individual's belief in the likelihood of achieving desired performance levels and the perceived rewards associated with those levels.

P-to-O Expectancy

The belief that putting in a certain amount of effort (Performance) will lead to a specific outcome (Outcome) in the context of expectancy theory.