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    Corporate Finance
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    Exam 20: Financial Options
  5. Question
    Consider the Following Equation: C = S - K
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Consider the Following Equation: C = S - K

Question 25

Question 25

Multiple Choice

Consider the following equation: C = S - K + dis(K) + P
In this equation,S - K tells us:


A) the market value of the option.
B) the time value of the option.
C) the option spread.
D) the intrinsic value of the option.

Correct Answer:

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