The Intrinsic Value of a Call Is I

question 45

Multiple Choice

The intrinsic value of a call is I.the value of the call if it were to expire today.
II) equal to the lower bound of a call's value.
III) another name for the market price of a call.
IV) always equal to zero if the call is currently out of the money.

• A)I and III only
• B)II and IV only
• C)I and II only
• D)II,III,and IV only
• E)I,II,and IV only

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