You Own Five Put Option Contracts on XYZ Stock with an Exercise

question 15

Multiple Choice

You own five put option contracts on XYZ stock with an exercise price of $25. What is the total intrinsic value of these contracts if XYZ stock is currently selling for $24.50 a share?

• A) -$250
• B) -$50
• C) $0
• D) $50
• E) $250

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Definitions:

Upper Control Limit

The highest threshold in a control chart in statistical process control, beyond which a process output is considered to be out of control and indicative of a problem to be investigated.

Standard Deviation

An indicator that quantifies how much a dataset is scattered around its mean, demonstrating the distribution range of the data points.

Process Distribution

Represents how the values of a process or system's output are spread or dispersed over a range.

R Charts

Control charts used to monitor the range within samples in order to assess the variability of a process.