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:

IQ Test

An exam structured universally to assess human intellect and cognitive skills.

Reliability

Reliability refers to the degree to which an assessment tool produces stable and consistent results over time.

Validity

The extent to which a test, instrument, or procedure actually measures what it is intended to measure, reflecting the accuracy of the results.

Regression

A return to an earlier or less advanced state or form of behavior, often as a defense mechanism in psychology.