You Own Five Call Option Contracts on Swift Water Tours

question 85

Multiple Choice

You own five call option contracts on Swift Water Tours stock with a strike price of $25 per share and an option premium of $.45 per share. What is the total intrinsic value of these options today if the stock is currently selling for $25.20 a share?

• A) $20
• B) $45
• C) $0
• D) $450
• E) $100

---

Definitions:

Amorphous

Lacking a definite shape or form; in materials science, referring to a solid that does not possess the long-range order characteristic of crystals.

Isotactic

A polymer configuration where all substituents are on the same side of the polymer chain.

Atactic

A term describing a polymer chain configuration where the substituents on the carbon backbone are randomly oriented, leading to an amorphous material.

Crystallinity

A measure of the degree to which a material has a well-defined crystal structure.