A call option has a strike price of $80. If the underlying stock is selling for $83 on the expiration date, the intrinsic value of the call option is __________ per share
A) $163
B) $83
C) $3
D) $0
C
You might also like to view...
In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) None of the above represent a change in the quantity demanded with an unchanged demand.
During the period from 1970 to the present, the U.S. economy experienced a Great Inflation, a Great Moderation, and a Great Recession. How does this sequence illustrate the concept of a "business cycle"?
What will be an ideal response?
Which of the following are not counted when we compare a family's income to the poverty line?
a. In-kind transfers such as food stamps, Medicaid, and public housing. b. Cash welfare payments such as from social security. c. Cash payments when a worker becomes unemployed. d. Both a. and b. above are correct.
Suppose that you are planning to buy a new cellphone. Your choice is a new Samsung phone or HTC model. Samsung phones are manufactured in Korea and HTC phones are manufactured in Taiwan. Assuming that the price of each phone is the same, will your purchase of the Samsung or the HTC affect U.S. GDP differently? a. No, both have the same impact: your purchase will increase consumption expenditures
and decrease net exports by the same amount. b. Yes. This depends upon which cellphone carrier you choose. c. No, because Samsung's production only affects Korea's GDP; and HTC's production only impacts Taiwan's GDP. d. Yes. The country from which a product is imported has different effects on U.S. GDP because it depends upon trade agreements with the countries.