The value of an option if it were to immediately expire,that is,its lower pricing bound,is called an option's ________ value.
A)strike
B)market
C)volatility
D)time
E)intrinsic

Question

Quizplus · Accepted Answer

The value of an option at its lower pricing bound, i.e. its intrinsic value, is determined by the difference between the stock price and the strike price. This is the only option term in the list that refers to the immediate value of an option.

The Value of an Option If It Were to Immediately