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Management · Q554

International Finance and Treasury

Graduate and Post Graduate · Management · question 554

Q554

If exercise price of an option is 360 and intrinsic value of an option is 160 then price of an underlying asset is

A.
$200
Answer
B.
$520
C.
$160
D.
$360

Answer: Option A

Solution

Answer: Option A
Solution:
Price of an underlying asset = Exercise price of an option - Intrinsic value of an option
= 160 = $200.
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