KD Industries Stock Is Currently Trading at $32 Per Share

question 51

Multiple Choice

KD Industries stock is currently trading at $32 per share.Consider a put option on KD stock with a strike price of $30.The intrinsic value of this put option is:

• A)$0.
• B)-$2.
• C)$2.
• D)$30.

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Definitions:

Cash Balance

The total amount of money, in cash or cash equivalents, that an individual or entity has at any given time.

Interest Payment

The amount paid to a lender by a borrower for the use of borrowed money, usually expressed as an annual percentage of the principal.

Accounts Receivable Collections

The process of pursuing and collecting payments from customers or clients who have outstanding balances or invoices.

Receivables

Receivables from clients to an enterprise for products or services that have been dispensed or used, but whose payments are pending.