USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The current stock price of Zanco Corporation is $50. Zanco Corporation has the following put and call option prices with exercise prices at $45 and $50.

-Refer to Exhibit 14.5. The intrinsic value for the put option with a $50 exercise price is

A) $0.00.
B) $1.50.
C) $2.25.
D) $3.75.
E) $8.75.