Which One of the Following Describes the Intrinsic Value of a Put

question 46

Multiple Choice

Which one of the following describes the intrinsic value of a put option?

• A)lesser of the strike price or the stock price
• B)lesser of the stock price minus the exercise price or zero
• C)lesser of the stock price or zero
• D)greater of the strike price minus the stock price or zero
• E)greater of the stock price minus the exercise price or zero

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Definitions:

Displacement Task

A cognitive experiment that assesses the ability to remember the location of an object after it has been moved out of direct sight.

Socioeconomic Status

A combined measure of an individual's or family's economic and social position relative to others, based on income, education, and occupation.

Cortical Development

The process during which the brain's cerebral cortex matures, involving the growth and differentiation of neurons, vital for cognitive functions.

Perspectives

Different ways of viewing or considering something, often influenced by one's beliefs, culture, or individual understanding.