The Intrinsic Value of an Option

question 7

Multiple Choice

The intrinsic value of an option:

• A) is the amount the investor believes the option will be worth on the expiration date.
• B) is the amount the option is worth if it is exercised immediately.
• C) is equal to price of the underlying asset.
• D) cannot be determined without knowing the future price of the underlying asset.

---

Definitions:

Electronically Processing

The handling or management of information using electronic devices and systems, including for tasks such as data entry, storage, or communication.

HIPAA

The Health Insurance Portability and Accountability Act, a United States legislation that provides data privacy and security provisions for safeguarding medical information.

Explanation of Benefits (EOB)

A document provided by insurance companies to describe the costs covered for medical services rendered, and any patient responsibility.

Coinsurance Co-payment Amount

The portion of healthcare service costs that an insured person is responsible for paying, after the insurance has covered its share.