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Price of underlying asset is added into intrinsic value of option...

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International Finance and Treasury
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Price of underlying asset is added into intrinsic value of option to calculate

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Correct Answer: Option B
Price of underlying asset is added into intrinsic value of option to calculate exercise price of option. The strike price (or exercise price) of an option is the fixed price at which the owner of the option can buy (in the case of a call), or sell (in the case of a put), the underlying security or commodity.
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