Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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10) can i please get help?
Transcribed Image Text:The time value of an option is equal to:
Multiple Choice
The net present value of the option's cash flows, discounted at the risk-free interest rate.
The difference between the option's market price and its intrinsic value.
The difference between the option's intrinsic value and its market price.
The risk-free interest rate in the economy.
The net present value of the option's cash flows.
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