Suppose that Acme Widget is currently selling for $100 per share and you own a call option to buy Acme Widget at $75 per share. The intrinsic value of your option is
A) $25.
B) $75.
C) $100.
D) not possible to determine in the absence of information on values of the share price of Acme Widget between now and the expiration date of the call.
A
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