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Intrinsic value of option is subtracted from exercise price of an...

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International Finance and Treasury
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Intrinsic value of option is subtracted from exercise price of an option to calculate

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Correct Answer: Option B
Intrinsic value of option is subtracted from exercise price of an option to calculate price of underlying asset. The intrinsic value of an option represents the current value of the option, or in other words how much in the money it is.
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