What Is the Intrinsic Value of a Call with a Strike

question 103

Multiple Choice

What is the intrinsic value of a call with a strike price of $40 a market price of $44? The call's ask price $540.

• A)-$400
• B)-$140
• C)$940
• D)$400

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Definitions:

Operant Conditioning

A learning process where behavior is controlled by consequences, including reinforcements and punishments to increase or decrease the behavior's occurrence.

Partial Reinforcement

A conditioning schedule where only a portion of responses are reinforced, leading to slower acquisition of a response but greater resistance to extinction.

Continuous Reinforcement

A schedule of reinforcement where a reward follows every correct response or desired behavior, commonly used in the initial stages of training.

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty, often dependent on other factors.