A Call Option on Dani Corp

question 21

Multiple Choice

A call option on Dani Corp.is trading for $4.50.The strike price of the option is $25 and it has an expiration of 3 months.If the stock of Dani Corp.is trading at $28,how much of the option premium is attributed to intrinsic value?

• A) $1.50
• B) $3.00
• C) $25
• D) $28

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Definitions:

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