Last Week,you Purchased a Call Option on Edgewater Stock with a Strike

question 76

Multiple Choice

Last week,you purchased a call option on Edgewater stock with a strike price of $40.The stock price was $39.80 and the option price was $0.45 at that time.What is the intrinsic value per share if the stock is currently priced at $39.10?

• A)-$90
• B)-$70
• C)$0
• D)$70
• E)$90

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Definitions:

Solid

A state of matter characterized by particles that are closely packed together, giving it a fixed shape and volume.

Heterozygous

Having two different alleles for a specific gene.

Purple Flowers

Flowers of a plant characterized by their purple coloration, possibly resulting from genetic traits or environmental factors.

Pea Plant

A legume plant (Pisum sativum) used extensively in genetics studies, particularly by Gregor Mendel, for understanding heredity.