The Intrinsic Value of an Out-Of-The-Money Call Option Is Equal

question 4

Multiple Choice

The intrinsic value of an out-of-the-money call option is equal to

• A) the call premium.
• B) zero.
• C) the stock price minus the exercise price.
• D) the striking price.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, involving patterns of thought, feelings, and behaviors.

Sigmund Freud

An Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Social Psychologist

A scientist who studies how individuals think, influence, and relate to each other within a social context.

Personality Traits

Enduring characteristics or qualities that form an individual's distinct character, influencing behaviors and attitudes.