Rita Owns 12 Put Option Contracts on Farmington Stock with an Exercise

question 11

Multiple Choice

Rita owns 12 put option contracts on Farmington stock with an exercise price of $32.50.What is the total intrinsic value of these contracts if the stock is currently selling for $31.98 a share?

• A)-$624
• B)-$312
• C)$0
• D)$312
• E)$624

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Definitions:

Anesthesiology

A medical specialty focused on the safe use of drugs and techniques to render a patient unconscious or free of pain during surgical procedures and other medical interventions.

Evaluation And Management

A term used in healthcare referring to the assessment and ongoing management of a patient's treatment.

ICD-9-PCS

International Classification of Diseases, Ninth Revision, Procedure Coding System; a coding system used to classify procedures for billing and statistical purposes in healthcare.

ICD-10-PCS

The International Classification of Diseases, Tenth Revision, Procedure Coding System; a coding system for documenting procedures in healthcare settings.