CoboCards App FAQ & Wishes Feedback
Language: English Language
Sign up for free  Login

This flashcard is just one of a free flashcard set. See all flashcards!

All main topics / Finance & Investment / Derivatives / Derivatives

10.Which of the following best describes the intrinsic value of an option?
A.The value it would have if the owner had to exercise it immediately or not at all
B.The Black-Scholes-Merton price of the option
C.The lower bound for the option’s price
D.The amount paid for the option

Answer: A

The intrinsic value of an option is the value it would have if it were about the expire which is the same as the value in A.
New comment
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015




Forgot password?
Deutsch  English