You Own Five Put Option Contracts on XYZ with an Exercise

question 55

Multiple Choice

You own five put option contracts on XYZ with an exercise price of €25.What is the total intrinsic value of these contracts if XYZ is currently selling for €24.50 a share?

• A)-€250
• B)-€50
• C)€0
• D)€50
• E)€250

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Definitions:

First Quartile

The value below which 25% of the observations fall, marking the lower quarter of the data set.

Median

The middle value in a sorted list of numbers, dividing the dataset into two halves.

Third Quartile

A statistical term which represents the 75th percentile of a dataset, indicating that 75% of the data points fall below this value.

Box Plot

A graphical representation of data that shows the distribution's five-number summary: minimum, first quartile, median, third quartile, and maximum.