Solved

You Own Eight Call Option Contracts on Swift Water Tours

Question 79

Multiple Choice

You own eight call option contracts on Swift Water Tours stock with a strike price of $15.When you purchased the shares the option price was $0.30 and the stock price was $15.25.What is the total intrinsic value of these options if the stock is currently selling for $16.08 a share?


A) -$83
B) -$1.08
C) $0
D) $108
E) $864

Correct Answer:

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