781. If price of an option is $475 and time value of money is $375 then intrinsic value of an option is
A. $375
B. $100
C. $475
D. $850
✅ The correct answer is option B.
Untrinsic value of an option = Price of an option – Time value of money
= $475 – $375 = $100.
Untrinsic value of an option = Price of an option – Time value of money
= $475 – $375 = $100.