The difference between price of underlying asset and exercise price of option is classified as Options: A . &nbspextrinsic value of European option B . &nbspintrinsic value of option C . &nbspextrinsic value of option D . &nbspintrinsic value of European option

The difference between price of underlying asset and exercise price of option is

Question

The difference between price of underlying asset and exercise price of option is classified as

Options:

A . extrinsic value of European option

B . intrinsic value of option

C . extrinsic value of option

D . intrinsic value of European option

Answer: Option B
Answer: (b).intrinsic value of option

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