Examveda
Examveda

If stock price of call option is $300 and exercise price of call option is $260 then intrinsic value of option is

A. $260.00

B. $560

C. $40

D. $300

Answer: Option C

Solution(By Examveda Team)

Intrinsic value of option = Stock price of call option - Exercise price of call option
= $300 - $260 = $40.

This Question Belongs to Management >> International Finance And Treasury

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