BUG's Stock Price Is $53 and Its Put Price Is

question 10

Multiple Choice

BUG's stock price is $53 and its put price is $4.50 for a strike price of $55.This put option's intrinsic value is:

• A) $2
• B) $2.50
• C) $3
• D) $4
• E) None of these answers are correct.

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Definitions:

Manic Episode

A period characterized by abnormally elevated or irritable mood, increased activity or energy levels, and other extreme and exaggerated behaviors.

Hyperactive

Exhibiting excessive physical activity or movements that can be inappropriate or not goal-directed.

Thoughts Racing

A condition where an individual experiences an overwhelming and rapid flow of thoughts, often associated with manic episodes in bipolar disorder.

Cyclothymic Disorder

A mood disorder characterized by fluctuating low-level depressive and hypomanic episodes.