You Own Two Call Option Contracts on ABC Stock with a Strike

question 60

Multiple Choice

You own two call option contracts on ABC stock with a strike price of $15.When you purchased the shares the option price was $1.20 and the stock price was $15.90.What is the total intrinsic value of these options if ABC stock is currently selling for $13.50 a share?

• A)-$280
• B)-$180
• C)$0
• D)$100
• E)$180

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Definitions:

n Ach

Need for achievement, a motivational term in psychology that represents an individual's desire for significant accomplishment, mastering of skills, control, or high standards.

Work Motivation

The conditions and processes responsible for the arousal, direction, magnitude, and maintenance of effort of workers on the job.

Performance Enhancement

Techniques or substances used to improve any form of activity performance in humans.

Yerkes-Dodson Law

A psychological principle stating that performance increases with physiological or mental arousal, but only up to a point, after which performance begins to decrease.