We have a stock selling for $90.00. There is a put option for this stock with a strike price of $85 and an option price of $1.20:
A. you cannot determine the intrinsic value or time value of the option since the strike price is less than the underlying asset price.
B. the intrinsic value of this option is -$5.00 and the time value of the option is $1.20.
C. the intrinsic value of this option is $0.00 and the time value of the option is $1.20.
D. the intrinsic value of this option is $90.00 and the time value of the option is $1.20.
Answer: C
You might also like to view...
In the figure above, when the quantity of milk produced is 600 gallons per day, what is the deadweight loss?
A) $250 B) $125 C) $500 D) $50
If a country does not engage in trade with other countries, it is known as
A. A closed economy. B. A trade deficit economy. C. A trade surplus economy. D. An open economy.
Which of the following pairs of goods is most likely to have a positive cross-elasticity of demand?
A. Steak and hamburger. B. Hamburgers and hamburger buns. C. Fighter jets and pencils. D. College professors and textbooks.
The Maastricht Treaty eliminated passport controls at borders with the European Union
Indicate whether the statement is true or false