Multiple Choice
Which of the following statements is true of intrinsic value of options?
A) When the option strike price is more than the spot rate, the intrinsic value is zero.
B) When the option strike price is equal to the spot rate, the intrinsic value is positive.
C) When the option strike price is less than the spot rate, the intrinsic value is zero.
D) When the option strike price is more than the spot rate, the intrinsic value is negative.
Correct Answer:
Verified
Correct Answer:
Verified
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