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You Own Two Call Option Contracts on ABC Stock with a Strike

question 31

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You own two call option contracts on ABC stock with a strike price of $15. When you purchased the contracts the option price was $1.20 and the stock price was $15.90. What is the total intrinsic value of these options if ABC stock is currently selling for $14.50 a share?


Definitions:

Legitimate Political Power

Authority or power in political systems that is recognized as right and proper, often established through laws, social norms, or consensus.

Might Makes Right

The idea that, when determining who has legitimate power to govern a society, those who are the strongest or otherwise superior should (or inevitably will) rule. In effect, this is to claim that the person who is strong enough to hold on to ruling authority has legitimate power merely by virtue of being strong enough to retain power.

Distributive Justice

The ethical principle concerning the fair allocation of resources and goods among members of a society.

Retributive Justice

The fair use of punishment.

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