If price of an option is 475 and time value of...

Home / Management / International Finance And Treasury / Question

Examveda

If price of an option is $475 and time value of money is $375 then intrinsic value of an option is

A. $375

B. $100

C. $475

D. $850

Answer: Option B

Untrinsic value of an option = Price of an option - Time value of money
= $475 - $375 = $100.

Related Questions on International Finance and Treasury

A. The British Pound

B. The Japanese Yen

C. The Spanish Peso

D. The US Dollar

View Answer

A. International Monetary Fund

B. International bank for Reconstruction and Development

C. International Financial Corporation

D. World Trade Organisation

View Answer

A. Merchandise Payment

B. Service Payment

C. Factory Income

D. Transfer payment

View Answer

A. Imports

B. Direct Foreign Investment

C. Exports

D. Privatization

View Answer