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In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate

A. option return rate

B. exercise value

C. option value

D. stock value

Answer: Option B

Solution(By Examveda Team)

In financial planning, formula MAX [current price of stock-strike price, 0] is used to calculate exercise value. The exercise value is the value that an option buyer will get from the option on exercising it.

This Question Belongs to Commerce >> Financial Management

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