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Management · Q539

International Finance and Treasury

Graduate and Post Graduate · Management · question 539

Q539

If time value of an option is 200 and intrinsic value of an option is 250 then price of option is

A.
$50
B.
$550
Answer
C.
$200
D.
$250

Answer: Option B

Solution

Answer: Option B
Solution:
Price of option = Time value of an option + Intrinsic value of an option
= 250 = $550.
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