Quiz on ” Options – Long vs Short, Assignment, Exercise & ‘Moneyness’ “

1. What is the intrinsic value of an option?

A) The difference between the stock price and the strike price

B) The amount paid by the buyer to the seller of the option contract

C) The amount of time left until the option contract expires

2. What is the time value of an option?

A) The difference between the stock price and the strike price

B) The amount paid by the buyer to the seller of the option contract

C) The difference between the premium and intrinsic value of the option

3. What is an in-the-money option?

A) When the strike price is less than the stock price

B) When the strike price is greater than the stock price

C) When the strike price is equal to the stock price

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