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A November $40 call has a premium of $3.50 a share while the underlying stock is priced at $44.80. What is the intrinsic value of
A November $40 call has a premium of $3.50 a share while the underlying stock is priced at $44.80. What is the intrinsic value of this call?
Multiple Choice
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$0
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$2.85
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$6.75
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$4.15
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$4.80
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Analysis for Financial Management
Authors: Robert Higgins
11th edition
77861787, 978-0077861780
