If the current share price is S and the predetermined exercise price is X, the intrinsic value of the call option is__________. A. Max (O, S – X) B. Max (O, X – S) C. in (O, S – X) D. Min (O, X – S)
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If the share price is less than the exercise price, the intrinsic value is zero because the option holder would not exercise the option to buy at a higher price. Show more…
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