The profit that would be made if the option were exercised today is known as:
A) time value.
B) time decay.
C) delta.
D) intrinsic value.

Name: The profit that would be made if the option were exercised today is known as: A) time value. B) time decay. C) delta. D) intrinsic value.
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Question

Quizplus · Accepted Answer

Intrinsic value is the profit that would be made if the option were exercised today, as it represents the difference between the option's strike price and the current market price of the underlying asset.

The Profit That Would Be Made If the Option Were