Which one of the following terms is defined as the payoff that would be received if an option were expiring immediately?
A)parity price
B)market price
C)time value
D)underlying value
E)intrinsic value

Question

Quizplus · Accepted Answer

Intrinsic value is the payoff that would be received if an option were expiring immediately. It is the difference between the strike price and the current market price of the underlying asset.

Which One of the Following Terms Is Defined as the Payoff