Smith Enterprises Stock Currently Sells for $17

question 67

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:

Indians

Refers either to people from the country of India or to the indigenous peoples of the Americas, also known as Native Americans.

French and Indian War

A conflict between France and Britain (1754-1763) in North America, part of a larger series of conflicts known as the Seven Years' War.

British Military Advantage

The superior strategies, tactics, technology, training, or resources that allowed British armed forces to achieve success in warfare, historically significant in the context of the British Empire's global dominance.

Treaty of Paris

A significant agreement that ended the American Revolutionary War in 1783, recognizing American independence from Britain and establishing borders for the new nation.