Which of the Following Best Describes the Intrinsic Value of an Option

question 3

Multiple Choice

Which of the following best describes the intrinsic value of an option?

• A) The value it would have if the owner had to exercise it immediately or not at all
• B) The Black-Scholes-Merton price of the option
• C) The lower bound for the option's price
• D) The amount paid for the option

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Definitions:

Withdrawing Medication

The process of stopping or reducing a medication under the guidance of a healthcare provider.

Alcohol Wipe

A small piece of material saturated with alcohol used for disinfection of surfaces or skin before medical procedures or injections.

IM Injection

A method of delivering medication directly into the muscles, where it is quickly absorbed into the bloodstream.

Z-track Method

An injection technique utilized to prevent medication from leaking back through the needle track, especially for irritating or staining medications.