You Recently Purchased Three Put Option Contracts on Guillepsi Stock

question 17

Multiple Choice

You recently purchased three put option contracts on Guillepsi stock with an exercise price of $42.50.What is the total intrinsic value of these contracts if the stock is currently selling for $45 a share?

• A)-$360
• B)-$120
• C)$0
• D)$120
• E)$360

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Definitions:

Antheridia

Male reproductive structures in plants, algae, and fungi that produce and release sperm.

Integuments

Layers or coverings of an organism or organ, serving to protect or enclose, especially the outer layer of seeds or the skin of humans and animals.

Megasporangium

A plant structure that produces megaspores, which develop into female gametophytes in seed plants and certain ferns.

Ovules

Small structures within the ovary of seed plants that develop into seeds upon fertilization.