Vidyalelo
Management · Q600

International Finance and Treasury

Graduate and Post Graduate · Management · question 600

Q600

If price of an option is 475 and time value of money is 375 then intrinsic value of an option is

A.
$375
B.
$100
Answer
C.
$475
D.
$850

Answer: Option B

Solution

Answer: Option B
Solution:
Untrinsic value of an option = Price of an option - Time value of money
= 375 = $100.
PreviousNext
All International Finance and Treasury questions