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

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Definitions:

Seating Arranged

The intentional arrangement of seating in a space, designed to achieve specific interaction patterns or communication objectives.

Explicit Contract

A clearly defined and articulated agreement between parties, typically formalized in writing, detailing specific expectations, roles, and responsibilities.

Written Contract

A formal document that outlines the terms, conditions, rights, and responsibilities agreed upon by the parties involved.

Postaffiliation

The phase or stage that follows the establishment of a connection or alliance between groups or individuals.