The Intrinsic Value of a Call Option

question 9

Multiple Choice

The intrinsic value of a call option:

• A) is the difference between the option price and the interest rate.
• B) must be less than or equal to zero.
• C) is the greater of zero or the difference between the price of the underlying asset and the strike price.
• D) will be negative if the time value of the option is negative.

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