The Value of a European Style Call Option Is the Sum

question 52

Multiple Choice

The value of a European style call option is the sum of two components, the

• A)present value plus the intrinsic value.
• B)time value plus the present value.
• C)intrinsic value plus the time value.
• D)the intrinsic value plus the standard deviation.

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Definitions:

Geographic Location

The specific physical position or area where something exists or occurs, often defined in terms of latitude and longitude.