If We Have a Stock Selling for $95

question 27

Multiple Choice

If we have a stock selling for $95.00 and a call option for this stock has a strike price of $82.00 and an option price of $13.60:

• A) the intrinsic value of the option is $0.60 and the time value of the option is $13.00.
• B) the intrinsic value is $82.00 and the time value of the option is $13.60.
• C) the intrinsic value of the option is $13.00 and the time value of the option is $0.60.
• D) the intrinsic value is $0 since the option is out of the money.

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Definitions:

Endoplasmic Reticulum

The organelles of the endoplasmic reticulum are composed of both smooth and rough types. The rough type contains ribosomes on its surface. The smooth type has no ribosomes. Both types create a network of passageways throughout the cytoplasm.

Myocytes

Muscle cells responsible for contraction and movement in the body.

Skeletal Muscles

Tissues in the body that are attached to bones and can be consciously controlled to produce movement.

Undercooked Meat

Meat that has not been cooked to the recommended internal temperature, posing a risk of foodborne illness due to bacteria or parasites.