Suppose That Acme Widget Is Currently Selling for $100 Per

question 80

Multiple Choice

Suppose that Acme Widget is currently selling for $100 per share and you own a call option to buy Acme Widget at $75 per share. The intrinsic value of your option is

• A)$25.
• B)$75.
• C)$100.
• D)not possible to determine in the absence of information on values of the share price of Acme Widget between now and the expiration date of the call.

---

Definitions:

Thomas and Chess

Psychologists who developed a temperament classification system in the study of child development, highlighting the importance of individual differences.

Counselling

A professional service providing guidance, support, and problem-solving strategies to individuals or groups dealing with personal issues.

Jerome Kagan

A prominent figure in developmental psychology, known for his extensive research on infants' temperamental traits and the impact of biology and environment on personality.

Inhibited

A state or condition where actions, processes, or reactions are slowed down or prevented.