Suppose That Maxima Shares Are Selling for $10 Per Share

question 103

Multiple Choice

Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50.The intrinsic value of your option is:

• A) $10.00
• B) $7.50
• C) $2.50
• D) not determinable without further information.

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Definitions:

Positive Impact

The beneficial effect that one's actions or policies have on individuals, communities, environments, or markets.

Negative Impact

The adverse effects or harm that an action or decision may cause to individuals, communities, or the environment.

SWOT Analysis

A strategic planning tool that identifies and evaluates the Strengths, Weaknesses, Opportunities, and Threats related to a project or business.

Capital Investments

Funds invested in a company or project for the purpose of furthering its business objectives, typically in physical assets like buildings or machinery.