The Difference Between the Exercise Price and the Underlying Asset

question 4

Multiple Choice

The difference between the exercise price and the underlying asset price is called the:

• A) option profit
• B) option value
• C) immediate value
• D) none of these options

---

Definitions:

Situational Leadership Model

A leadership theory proposing that effective leaders adjust their style according to the maturity and competency of their followers.

Task Behavior

The actions and activities an individual undertakes to achieve a specific objective.

Relationship Behavior

Actions and interactions that define the nature of relationships between individuals or groups.

Subordinates

Employees or team members who are ranked lower within an organization's hierarchy and report to a supervisor or manager.