b6d83f54_l_Review_Flashcards___Cram_com___using_dividend_growth_model__
The Exercise or Strike price of an option is the specified price at which the holder of a call option has a right to purchase the asset. The purchase price of the option is known as the premium and the difference between the exercise price and the current stock price is know as the Intrinsic Value of the option. The difference between the current price of the option and its intrinsic value is the Time Value of the option.
A call option gives the holder the right to purchase an asset at a specified price, called the ________ price, before some specified date. The purchase price of the option is called the ________, while the exercise price of the option minus the current stock price is known as ________. Finally, the difference between the actual call price and its intrinsic value is known as the ________ of the option. A- Exercise; premium; intrinsic value; time value B- Exercise; cost; time value; intrinsic value C- Strike; premium; market value; intrinsic value D- Strike; cost; intrinsic value; exercise value
Final Review Flashcards - Cram.com