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Rita Owns Six Put Option Contracts on Farmington Stock with an Exercise

Question 62

Multiple Choice

Rita owns six put option contracts on Farmington stock with an exercise price of $27.50.What is the total intrinsic value of these contracts if the stock is currently selling for $26.98 a share?


A) −$624
B) −$312
C) $0
D) $312
E) $624

Correct Answer:

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