The Value of an Option If It Were to Immediately

question 341

Multiple Choice

The value of an option if it were to immediately expire, that is, its lower pricing bound, is called an option's _________________.

• A) Strike value.
• B) Market value.
• C) Volatility value.
• D) Time value.
• E) Intrinsic value.

---

Definitions:

Duplex Mind

Describes the concept that the human mind has two different processing systems: an automatic, unconscious system and a deliberate, conscious system.

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling thoughts, emotions, and behaviors.

Cocktails

Mixed alcoholic drinks composed of spirits, water, sugar, and bitters, often garnished and served chilled.

Tropical Island

A landmass located in the tropics, characterized by warm climates, and surrounded by the sea, often considered paradisiacal.