You Own Two Call Option Contracts on ABC Stock with a Strike

question 8

Multiple Choice

You own two call option contracts on ABC stock with a strike price of $15.When you purchased the contracts the option price was $1.20 and the stock price was $15.90.What is the total intrinsic value of these options if ABC stock is currently selling for $14.50 a share?

• A)$280
• B)$180
• C)$100
• D)$0
• E)$29

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