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Market value of option which is out-of-money is

This question belongs to Commerce Financial Management
Financial Management
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Market value of option which is out-of-money is

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Correct Answer: Option A
Market value of option which is out-of-money is greater than zero. The market price of the option is the price you pay when you buy the option and the price you get when you sell the option. The market price of the option consists of two parts, intrinsic value and time value.
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