Series 7 - General Securities Representative Exam
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Jason bought a XYZ company July 44 Call for 16.20. A month later, the stock is trading at $70 What is the intrinsic value of the call?
0
A
$2,780
B
$4,220
C
$2,600
D
Explanations
The intrinsic value is calculated by taking the current share price and subtracting the strike price of the call. 70 - 44 = 26 = $2600