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:

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels and play a key role in night vision.

Specialized Cells

Cells that have developed unique structures and functions to perform specific tasks within an organism, such as nerve or muscle cells.

Nervous System

The complex network of nerves and cells that transmits messages between the brain and the rest of the body.

Lens

In the context of vision, the transparent structure inside the eye that focuses light rays onto the retina to create clear images.