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    Fundamentals Of Corporate Finance Study Set 21
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    Exam 25: Options and Corporate Securities
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    When a Call Is Out of the Money Then Its
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When a Call Is Out of the Money Then Its

Question 130

Question 130

Multiple Choice

When a call is out of the money then its intrinsic value is equal to:


A) Zero.
B) The exercise price.
C) The stock price.
D) The difference between the exercise price and the stock price.
E) The upper bound of the call's value.

Correct Answer:

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