minimum option value
minimum value
maximum value
exercise value
Answer is Wrong!
Answer is Right!
The correct answer is: D. exercise value
The exercise value of an option is the price
at which the option holder can exercise the option. If the option is in the money, the exercise value is equal to the difference between the strike price and the market price of the underlying asset. If the option is out of the money, the exercise value is zero.The minimum value of an option is the premium paid for the option. The maximum value of an option is the difference between the strike price and the market price of the underlying asset, if the option is in the money.
Here is a table that summarizes the different values of an option:
| Option value | Description |
|—|—|
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