The Intrinsic Value of an Option Is Solely a Function

question 17

True/False

The intrinsic value of an option is solely a function of market price and strike price,without any consideration of risk,dividend yield,leverage,or any other factor.

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Definitions:

Earnings per Share

A key financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in cash.

Dividend Yield

An economic indicator reflecting the yearly dividends paid by a firm in comparison to its current share value.

Cash Dividends

Cash distributions from a company to its shareholders, usually derived from earnings.