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Difference between price of underlying asset and exercise price of option...

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International Finance and Treasury
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Difference between price of underlying asset and exercise price of option is classified as

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Correct Answer: Option B
Difference between price of underlying asset and exercise price of option is classified as intrinsic value of option. The intrinsic value of an option represents the current value of the option, or in other words how much in the money it is. When an option is in the money, this means that it has a positive payoff for the buyer.
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