Rita Owns Six Put Option Contracts on Farmington Stock with an Exercise

question 3

Multiple Choice

Rita owns six put option contracts on Farmington stock with an exercise price of $27.50.What is the total intrinsic value of these contracts if the stock is currently selling for $26.98 a share?

• A)−$624
• B)−$312
• C)$0
• D)$312
• E)$624

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Definitions:

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Actions or tendencies that are counterproductive to oneself, often preventing coping with challenges or situations effectively.

Client-Centered Therapist

A psychological therapist who practices Client-Centered Therapy, focusing on providing a supportive environment that facilitates self-discovery and personal growth.

Direct Focus

Involves centering attention on a specific task or object, excluding distractions to enhance performance or awareness.