Time value of an option is added into intrinsic value to...

Home / Management / International Finance And Treasury / Question

Examveda

Time value of an option is added into intrinsic value to calculate

A. market index of an option

B. depreciated value of option

C. appreciated value of option

D. price of an option

Answer: Option D

Solution (By Examveda Team)

Time value of an option is added into intrinsic value to calculate price of an option. The price of an option, called the premium, is composed of a number of variables. Options traders need to be aware of these variables so they can make an informed decision about when to trade an option.

This Question Belongs to Management >> International Finance And Treasury

Join The Discussion

Related Questions on International Finance and Treasury

The world’s four major trading currencies are all free to float against each other. They include all the following except.

A. The British Pound

B. The Japanese Yen

C. The Spanish Peso

D. The US Dollar

View Answer

Not a profit maximizing business is

A. International Monetary Fund

B. International bank for Reconstruction and Development

C. International Financial Corporation

D. World Trade Organisation

View Answer

Gifts and Relief are

A. Merchandise Payment

B. Service Payment

C. Factory Income

D. Transfer payment

View Answer

Nations that have major economic expansion attract

A. Imports

B. Direct Foreign Investment

C. Exports

D. Privatization

View Answer