Three Weeks Ago,you Purchased a July 45 Put Option on RPJ

question 104

Multiple Choice

Three weeks ago,you purchased a July 45 put option on RPJ stock at an option price of $3.20.The market price of RPJ stock three weeks ago was $42.70.Today,RPJ stock is selling at $44.75 a share and the July 45 put is priced at $.80.What is the intrinsic value of your put contract?

• A)$295
• B)$210
• C)$0
• D)$25
• E)$110

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