Which One of the Following Terms Is Defined as the Payoff

question 22

Multiple Choice

Which one of the following terms is defined as the payoff that would be received if an option were expiring immediately?

• A)parity price
• B)market price
• C)time value
• D)underlying value
• E)intrinsic value

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Definitions:

RuntimeException

A type of unchecked exception in Java that indicates errors that can occur during the execution of a program and are not checked at compile-time.

Checked

In the context of exceptions in Java, it refers to exceptions that are checked at compile-time, requiring explicit handling in the code.

Interface

A programming construct that specifies a set of methods a class must implement without providing the method implementations.