A Stock Is Currently Selling for $22

question 19

Multiple Choice

A stock is currently selling for $22.00 per share.Ignoring interest,determine the intrinsic value of a call option should there exist equally probable stock prices of $25.00 and $23.00.

• A) $0.00
• B) $1.00
• C) $2.00
• D) $3.00

---

Definitions:

Workers' Compensation Statutes

Laws that provide financial and medical benefits to employees who are injured or become ill as a direct result of their job.

Strict Liability

Strict liability is a legal principle that holds an individual or entity responsible for damages or harm caused by their actions or products, regardless of intent or negligence.

Employer's Negligence

A legal concept where an employer fails to provide a safe working environment, leading to potential harm or injury to employees.

Law of Torts

The area of law that deals with civil wrongs, including negligence, intentional harm to persons or property, and liabilities for those actions.