Solved

The Intrinsic Value of an Option Is

Question 96

Multiple Choice

The intrinsic value of an option is:


A) the same as the option premium.
B) the amount the option is actually worth if it is immediately exercised.
C) the amount the option is likely to be worth on its expiration date.
D) impossible to determine given the lack of information on the future prices of the underlying asset.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions