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If the Current Closing Price in the Stock of XYZ

question 41

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If the current closing price in the stock of XYZ, Inc. is $87.50 and the July expiration put options with a strike price of $80 are selling for $1.05, what is the intrinsic value of the option? What is the option premium?


Definitions:

Extraneous Variable

Denotes any variable other than the independent variable that might cause unwanted changes in the outcome of an experiment.

Independent Variable

The variable that is manipulated or changed in an experiment to test its effects on the dependent variable.

Dependent Variable

In an experiment, the variable that is measured or tested and is expected to change as a result of manipulations to the independent variable.

Interrelated Ideas

Concepts or thoughts that are connected in such a way that they influence or impact each other.

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