Which of the Following Statements Is True of Intrinsic Value

question 15

Multiple Choice

Which of the following statements is true of intrinsic value of options?

• A) When the option strike price is more than the spot rate, the intrinsic value is zero.
• B) When the option strike price is equal to the spot rate, the intrinsic value is positive.
• C) When the option strike price is less than the spot rate, the intrinsic value is zero.
• D) When the option strike price is more than the spot rate, the intrinsic value is negative.

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Definitions:

Monitor

A device or program that observes, keeps track of, or displays information, often used in computers or medical equipment.

Hardware

The physical components and devices that make up a computer or computer system.

Software

Programs and operating information used by a computer to perform specific tasks or functions.

Examination Room

A room within a healthcare facility where patients are examined by medical professionals, typically equipped with medical supplies and diagnostic instruments.