A November $40 Call Has a Premium of $4

question 23

Multiple Choice

A November $40 call has a premium of $4.60 a share while the underlying stock is priced at $44.15. What is the intrinsic value of this call?

• A) $0
• B) $1.45
• C) $.45
• D) $4.15
• E) $4.60

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