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Management · Q623

International Finance and Treasury

Graduate and Post Graduate · Management · question 623

Q623

If stock price of call option is 300 and exercise price of call option is 260 then intrinsic value of option is

A.
$260.00
B.
$560
C.
$40
Answer
D.
$300

Answer: Option C

Solution

Answer: Option C
Solution:
Intrinsic value of option = Stock price of call option - Exercise price of call option
= 260 = $40.
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