What is an options intrinsic value

Reference no: EM131305262

1. What is an option premium? What is an option's intrinsic value? What other factors, besides intrinsic value, can affect the size of an option premium?

2. What is the Black-Scholes model? Who are the quants? How can investors use options to manage risk?

3. Why might someone buy an option on a futures contract derived from an underlying asset rather than buy an option on the underlying asset itself?

Reference no: EM131305262

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