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ACI

3I0-012 · Question #559

The intrinsic value of a long call option:

The correct answer is A. Falls and rises with the price of the underlying commodity, but is always positive. See the full explanation below for the reasoning.

Question

The intrinsic value of a long call option:

Options

  • AFalls and rises with the price of the underlying commodity, but is always positive
  • BRises if the price of the underlying commodity falls and vice versa
  • CDepends solely on the volatility of the price of the underlying commodity
  • DBecomes negative if the market price of the underlying commodity falls below the strike price of the option

How the community answered

(46 responses)
  • A
    78% (36)
  • B
    4% (2)
  • C
    7% (3)
  • D
    11% (5)

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