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Which of the Following Best Describes the Intrinsic Value of an Option

Question 3

Multiple Choice

Which of the following best describes the intrinsic value of an option?


A) The value it would have if the owner had to exercise it immediately or not at all
B) The Black-Scholes-Merton price of the option
C) The lower bound for the option's price
D) The amount paid for the option

Correct Answer:

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