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A 45 Put Option on a Stock Priced at $50

question 3

Multiple Choice

A 45 put option on a stock priced at $50 is priced at $3.50.This call has an intrinsic value of ______ and a time value of _____.


Definitions:

Dividend Income

Income received from owning shares in a company, typically paid out of the company's profits.

Financial Statements

Documents that provide an overview of a business's financial condition, including balance sheet, income statement, and cash flow statement, among others.

Joint Ventures

A commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.

Private Corporations

Businesses owned by private individuals or entities, characterized by not having shares publicly traded on stock exchanges.

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