The $2250 Put Option on ALF Stock Is Priced at $1

question 32

Multiple Choice

The $22.50 put option on ALF stock is priced at $1.12.What is the total intrinsic value of one option contract if the underlying stock is currently selling for $23.10 a share?

• A)-$60
• B)-$52
• C)$0
• D)$60
• E)$52

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Definitions:

Colonial Governments

Administrative bodies established by colonial powers to oversee and control their colonies, often imposing foreign governance systems on indigenous populations.

Colonial Experience

Refers to the period of history when various European powers established colonies abroad, imposing their control and influence on other territories and peoples.

English And French

Languages that are widely spoken globally, originating from England and France, respectively, and serving as official languages in numerous countries.

Mayflower Compact

An agreement reached by the Pilgrims on the Mayflower in 1620, which established a rudimentary form of democracy and self-government for their new settlement in Plymouth.