A Call Option Has an Exercise Price of $30 and a Stock

question 82

Multiple Choice

A call option has an exercise price of $30 and a stock price of $34. If the call option is trading for $5.25, what is the intrinsic value of the option?

• A) $0
• B) $1.25
• C) $4
• D) $5.25

Understand the legal obligations and rights concerning credit reporting, including the obligations of credit bureaus and the rights of individuals.

Understand the basic concepts and categories of biological classification.

Recognize the significance of evolutionary relationships in the classification of organisms.

Comprehend the principles and applications of the molecular clock hypothesis.

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Definitions:

Identification

The process by which an individual aligns themselves with the values, beliefs, or behaviors of another person or group.

Superego

In psychoanalytic theory, the part of the personality that represents internalized ideals, morals, and societal norms, guiding behavior through conscience.

Ego

In psychoanalytic theory, the part of the psyche that mediates demands from the id, superego, and reality.

Id

A component of Sigmund Freud's model of the psyche that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.