IDNLearn.com makes it easy to get reliable answers from experts and enthusiasts alike. Ask anything and get well-informed, reliable answers from our knowledgeable community members.
Sagot :
The intrinsic value of this stock is $300.
What is intrinsic value?
An asset's intrinsic value is often a value estimated using simple assumptions. For example, the intrinsic value of an option is based on the underlying instrument's present market value but overlooks the likelihood of future volatility and the time value of money.
For example, if the striking price of a call option is $19 and the market price of the underlying stock is $30, the call option's intrinsic value is $11. There are very few options that are worth less than what the option holder can receive if the option is exercised.
Intrinsic value is a basic, objective value found in an object, asset, or financial contract.
To know more about intrinsic value follow the link:
https://brainly.com/question/7997404
#SPJ4
Thank you for using this platform to share and learn. Don't hesitate to keep asking and answering. We value every contribution you make. IDNLearn.com is committed to providing accurate answers. Thanks for stopping by, and see you next time for more solutions.