British Imports Has a Stock Price of $38

question 4

Multiple Choice

British Imports has a stock price of $38.62 a share.The $35 put is priced at $.15.The intrinsic value of the put is ________,and the time value is ________.

• A)$0;$1.65
• B)$3.62;$.15
• C)$0;$.15
• D)$0;$3.62
• E)$3.62;−$3.47

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Definitions:

Adverse Publicity

Negative media coverage or public attention that can potentially harm an organization's reputation or financial standing.

Advocacy

The act of publicly supporting or recommending a particular cause or policy.

Lorillard Tobacco Co.

An American tobacco company known historically for producing cigarettes and other tobacco products.