An American-Style Call Option with Six Months to Maturity Has

question 27

Multiple Choice

An American-style call option with six months to maturity has a strike price of $35.The underlying stock now sells for $43.The call premium is $12.What is the intrinsic value of the call?

• A) $12
• B) $8
• C) $0
• D) $23
• E) none of these.

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