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

question 31

Multiple Choice

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?

• A) -$280
• B) -$180
• C) -$100
• D) $0
• E) $100

---

Definitions:

Cross Dock Distribution Center

A facility specifically designed for cross-docking processes, facilitating the swift transfer of goods from incoming to outgoing transportation without long-term storage.

Milk Runs

A delivery method where a single vehicle collects and delivers goods in a round trip from multiple suppliers to a single location, or vice versa, to increase efficiency and decrease transportation costs.

LTL Carrier

An LTL (Less Than Truckload) carrier transports small freight shipments that do not require the full space of a truck.

Package Carrier

A company or service that specializes in the shipping and delivery of parcels and packages.