Vidyalelo
Commerce · Q968

Financial Management

Graduate and Post Graduate · Commerce · question 968

Q968

Relevant information about stock market price if it is given, then this price is called

A.
market price
B.
intrinsic price
Answer
C.
extrinsic price
D.
unstable price

Answer: Option B

Solution

Answer: Option B
Solution:
Relevant information about stock market price if it is given, then this price is called intrinsic price. Intrinsic value is the perceived or calculated value of an asset, an investment, or a company. The term finds use in fundamental analysis to estimate the value of a company and its cash flows. Another use of intrinsic value is in the amount of profit that exists in an options contract.