Given a current share price of $20 and an exercise price of $22, which of the following statements is true?
A) A call option has an intrinsic value of $2 and a put option has an intrinsic value of $0.
B) A call option has an intrinsic value of -$2 and a put option has an intrinsic value of $2.
C) A call option has an intrinsic value of $0 and a put option has an intrinsic value of $2.
D) A call option has an intrinsic value of $0 and a put option has an intrinsic value of -$2.
E) A call option has an intrinsic value of $2 and a put option has an intrinsic value of $2.
Correct Answer:
Verified
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