n NISM Certifications
NSM General NISM
Medium

The extent to which an option is In-the-money is known as its ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. Intrinsic Value

    Correct answer

  2. B

    Time Value

  3. C

    Premium Value

  4. D

    Notional Value

Why this is the answer

Intrinsic value measures how much an option is in-the-money.

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