A Stock Is at $68

question 46

Multiple Choice

A stock is at $68.A two-month put (strike price = $70) is available at a $6 premium..The intrinsic value is ___ and the time value is ____.

• A)$0 ...$4.
• B)$3 ...$5.
• C)$2 ...$4.
• D)$2 ...$3.

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Definitions:

Gasoline Prices

The cost per unit of gasoline, influenced by factors such as crude oil prices, refinery costs, taxes, and demand.

Quantity Demanded

The total amount of a good or service that consumers are willing to purchase at a given price level, at a specific point in time.

Demand

The total quantity of a good or service that consumers are willing and able to purchase at various prices during a specific time period.

Equilibrium

A state of balance in a system where supply equals demand, and there is no external force prompting change.