Smith Enterprises Stock Currently Sells for $17

question 89

Multiple Choice

Smith Enterprises stock currently sells for $17.50.A call option on the stock has a strike price of $15 and currently sells at $4.50.What is the intrinsic value of the option?

• A) $0
• B) $2.50
• C) $4.50
• D) $1.25

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Definitions:

Narcissistic Personality Disorder

A mental condition characterized by a long-term pattern of exaggerated self-importance, a need for excessive attention and admiration, and a lack of empathy for others.

Ego-dystonic

Refers to troubling thoughts, feelings, beliefs, or behaviors that one experiences as alien or foreign and would like to be rid of.

Prevalence

The proportion of a population found to have a particular condition or characteristic at a specific time.

Narcissistic Personality Disorder

A mental condition characterized by an inflated sense of importance, deep need for excessive attention and admiration, troubled relationships, and a lack of empathy for others.