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QUESTION 55 If an option premium is > intrinsic value, then the option has: a. Intrinsic value > 0. b. Stock price > strike price.

QUESTION 55

  1. If an option premium is > intrinsic value, then the option has:

    a. Intrinsic value > 0.

    b. Stock price > strike price.

    c. Stock price < strike price.

    d. Time value > 0.

QUESTION 56

  1. What is the maximum loss from selling 1 ABC December 75 put for $2.30?

    a. $230.

    b. $2,300.

    c. $7,270.

    d. Unlimited.

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