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Suppose You Purchase a Put Option to Sell General Motors

question 55

Essay

Suppose you purchase a put option to sell General Motors common stock at $80 per share in March. The current price of GM stock is $83 and the time value of the option is $1. What is the intrinsic value of the option?


Definitions:

Protein-bound Iodine

A measure of the concentration of iodine bound to proteins in the blood, used to assess thyroid function.

Triiodothyronine

A thyroid hormone, also known as T3, which plays a crucial role in regulating metabolism, heart rate, and body temperature.

Correct Abbreviation

A precise shortened form or acronym that accurately represents the expanded form of a word or phrase.

Thyroxine

A hormone produced by the thyroid gland, important for regulating metabolism.

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