European Imports Has a Stock Price of $37

question 37

Multiple Choice

European Imports has a stock price of $37.90 a share.The $37.50 put is priced at $2.75.The intrinsic value of the put is ____ and the time value is _____.

• A)$0;$2.75
• B)$2.75;$0
• C)$.40;$2.35
• D)$2.35;$.40
• E)$2.75;$2.40

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Definitions:

Frequency Polygon

A graphical representation of the distribution of a data set, using a line graph to connect midpoints of intervals.

Bar Chart

A graphical representation of data using bars of different heights or lengths to show the values of various categories.

Frequency Distribution

A summary of how often each value in a set of data occurs, typically presented in a table or graphically as a histogram.

SAT Math Scores

Quantitative data reflecting individuals’ performance on the mathematics section of the SAT examination.