Selling an Option Is Generally More Valuable Than Exercising the Option

question 42

Multiple Choice

Selling an option is generally more valuable than exercising the option because of the option's:

• A)riskless value.
• B)intrinsic value.
• C)standard deviation.
• D)exercise price.
• E)time premium.

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Definitions:

Social Capital

The networks, relationships, and social interactions that provide individuals and communities with value, facilitating cooperation and benefitting collective and individual actions.

Malcolm Gladwell

An author and journalist known for exploring the intricacies of social sciences through his books and writings.

Connector

An individual or tool that links people with each other or links concepts, resources, or systems together facilitating interaction or understanding.

Weak Tie

A connection or relationship between individuals in a social network that is not strong, frequent, or emotionally close, but can provide new insights and opportunities because of its diversity.