You Own Five Put Option Contracts on XYZ Stock with an Exercise

question 15

Multiple Choice

You own five put option contracts on XYZ stock with an exercise price of $25. What is the total intrinsic value of these contracts if XYZ stock is currently selling for $24.50 a share?

• A) -$250
• B) -$50
• C) $0
• D) $50
• E) $250

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Definitions:

Marital Satisfaction

The state of contentment and fulfillment experienced within a marital relationship, often measured through aspects such as emotional intimacy, communication, and mutual respect.

Trial Marriage

An arrangement in which a couple lives together for a period of time to decide if they want to marry, serving as a test of their compatibility.

Divorce Rates

The statistical measure indicating the number of divorces occurring among the population within a given time period.

Economic Survival

The ability of an individual, household, or entity to maintain sufficient income or resources to support its livelihood and meet basic needs.