You Own Six Put Option Contracts on HOL Stock with an Exercise

question 20

Multiple Choice

You own six put option contracts on HOL stock with an exercise price of $30.What is the total intrinsic value of these contracts if HOL stock is currently selling for $26.00 a share?

• A)-$2,400
• B)-$240
• C)$0
• D)$240
• E)$2,400

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Definitions:

Disinhibition

The reduction of restraint or inhibition which can lead to an increase in spontaneous or impulsive behaviors, often seen in social or psychological contexts.

Repetitive Experiences

Encounters or events that occur repeatedly over time, potentially impacting an individual's learning, behavior, or psychological state.

Internal Locus

The belief that one has control over their life events and outcomes, as opposed to external environmental factors.

Control

The power to influence or direct people's behavior or the course of events.