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    Investment Analysis and Portfolio Management Study Set 1
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    Exam 14: An Introduction to Derivative Markets and Securities
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    Consider a Stock That Is Currently Trading at $45
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Consider a Stock That Is Currently Trading at $45

Question 11

Question 11

Multiple Choice

Consider a stock that is currently trading at $45. Calculate the intrinsic value for a call option that has an exercise price of $35.


A) $25
B) $35
C) $0
D) -$10
E) $10

Correct Answer:

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