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| All of the following statements about the intrinsic value of an option are true except A. The intrinsic value of an option is its value, before transaction costs, to an investor who would buy the option and exercise it immediately. B. The intrinsic value of an option is the amount by which it is “in the money.” C. The intrinsic value of an option is only one part of its market value. D. The intrinsic value of an option is equal to its market value. |