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This chapter is from the book

Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative MarketCommodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market

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Intrinsic and Extrinsic Value: Components of an Option Price

The value of any given option is composed of two components:

  • Intrinsic value
  • Extrinsic value

Option Price=Intrinsic Value+Extrinsic Value

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Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market

This chapter is from the book

Commodity Options: Trading and Hedging Volatility in the World’s Most Lucrative Market

Learn More Buy