Suppose There Is a Call Option on a Stock with One

question 115

Multiple Choice

Suppose there is a call option on a stock with one month to expiration. The intrinsic value of the call must be _________ than the actual value of the call.

• A) less than or equal to
• B) equal to
• C) greater than or equal to
• D) equal to if the stock pays a dividend
• E) There is no definite relationship.

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Definitions:

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Social Services Agency

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