Given a stock price of $18, an exercise price of $20, and an interest rate of 7%, what are the intrinsic values which will occur for a one-period binomial option model if the stock price goes up to $23 or down to $16?
A. $3 and $0
B. $3 and -$4
C. $4 and $3
D. $4 and $2
A. $3 and $0
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About how many people are waiting in line for a soda?
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