A Put Option Has an Intrinsic Value of Zero If

question 7

Multiple Choice

A put option has an intrinsic value of zero if the option is

• A) at the money.
• B) out of the money.
• C) in the money.
• D) at the money and in the money.
• E) at the money or out of the money.

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Definitions:

International Trade

The exchange of goods and services across international borders or territories.

Draft

A draft is a preliminary version of a document, plan, or design that is subject to revisions and improvements.

Buyer's Bank

The financial institution that represents a buyer in transactions, ensuring payment to the seller under agreed conditions.

Cashier's Check

A check issued by a bank and drawn from its own funds rather than those of a personal account, typically used for significant transactions where guaranteed funds are required.