The Intrinsic Value of an In-The-Money Put Option Is Equal

question 71

Multiple Choice

The intrinsic value of an in-the-money put option is equal to

• A)the stock price minus the exercise price.
• B)the put premium.
• C)zero.
• D)the exercise price minus the stock price.
• E)None of the options

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Definitions:

Beneficiary

(1) A person who can expect to benefit from a relationship. (2) A person who receives, or will receive, the proceeds from an insurance policy or a will.

Witness

A person who sees an event, typically a crime or accident, and can give a first-hand account of it, or someone who is present at the signing of a document and signs it themselves to confirm this.

Intestate

The condition of dying without having made a legal will, leading to assets being distributed according to state laws.

Durable Power

Refers to a durable power of attorney, a legal document that grants someone the authority to act on another's behalf, even if the grantor becomes incapacitated.