A 6-Month Put Has a Strike Price of $32

question 51

Multiple Choice

A 6-month put has a strike price of $32.50.The underlying stock's price is $31.10.What is intrinsic value of this put?

• A) $0.00
• B) $0.70
• C) $1.40
• D) $2.10
• E) $2.80

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Definitions:

Incubation

A process or period of time in which new ideas, projects, or startups are developed in a supportive environment.

Verification

The process of confirming or validating that something meets a set of standards or is true.

Creative Process

A sequence of thoughts and actions leading to original and appropriate outcomes or solutions.

Escalation of Commitment

Escalation of commitment involves continuing to invest in a decision despite evidence of its ineffectiveness, often due to sunk costs or pride.