The ________ of an option is the value if the option were to be exercised immediately. It is the option's ________ value.
A) intrinsic value; maximum
B) intrinsic value; minimum
C) time value; maximum
D) time value; minimum

Question

Quizplus · Accepted Answer

The intrinsic value of an option is the value it would have if it were exercised immediately, representing the minimum value of the option, not considering the time value or potential for future price changes.

The ________ of an Option Is the Value If the Option