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Suppose That Maxima Shares Are Selling for $10 Per Share

Question 103

Multiple Choice

Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50.The intrinsic value of your option is:


A) $10.00
B) $7.50
C) $2.50
D) not determinable without further information.

Correct Answer:

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