A Stock Is Selling for $45

question 26

Multiple Choice

A stock is selling for $45.75, with a call option available at a $40 strike that has a premium of $7.50. What is the intrinsic value of the call?

• A)$.75
• B)$1.75
• C)$5.00
• D)$5.75
• E)$7.50

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Definitions:

Insert Column

A function in spreadsheet software that allows users to add a new column to their data table.

Add Column

The process of inserting a new column into a table or spreadsheet, expanding its structure.

Record

In computing, a collection of related items of data treated as a single unit, often within a database.

Attribute

A quality or characteristic given to a person, group, or some other entity, or a specification in coding to define properties of elements.