Intrinsic Value Represents the Value

question 67

Multiple Choice

Intrinsic value represents the value

• A) the seller could extract from the option if they exercised it immediately.
• B) the buyer could extract from the option if they exercised it immediately.
• C) seller pays for the time premium.
• D) buyer pays for time premium.
• E) below zero.

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Definitions:

Numbers

Entities that are used in mathematics and computing to perform various operations, representing quantities or values.

Addresses

References or locations in computer memory that allow data to be uniquely identified and accessed.

Increment

Increment is an operation that increases the value of a variable by a fixed amount, usually by 1.

Decrement

An operation that decreases the value of a variable by a specific amount, commonly by one.