1. What is the intrinsic value for a CISCO Jan 50 put option when the current market price of a CISCO share is 40?

a. 0

b. 10

c. 10

d. 50

e. none of the above

2. When an option reaches its maturity date,

a. its intrinsic value is zero

b. its intrinsic value is equal to its exercise value

c. it has to be exercised

d. a and c

e. b and c

3. Which of the following statement is true about American vs. European options?

a. American option is only traded in north America

b. American option can only be exercised on the maturity date

c. American option is at least as valuable as an European option, and could be more valuable

d. b and c

e. all of the above