If the stock price of call option is $300 and the exercise price of call option is $260 then the intrinsic value of option is ___________?
Correct answer: C. 40
- A. 260
- B. 560
- C. 40
- D. 300
Explanation
For a call option, intrinsic value is the amount by which the stock price exceeds the exercise price: $300 − $260 = $40. The exercise price itself is not the option's intrinsic value.
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