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what is an extrinsic value

- something that is valuable in and or itself
- something that is valuable because it leads to another value
- something that has no value
- something that is valuable only because society values it highly

Respuesta :

shaima4hamad

Answer:

Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset's price

something that is valuable because it leads to another value

What is an Extrinsic value ?

  • Extrinsic value is the difference between the market price of an option, also knowns as its premium, and its intrinsic price, which is the difference between an option's strike price and the underlying asset's price.

  • It is of instrumental worth only.

  • Extrinsic or Instrumental values are the part of larger whole.

  • Extrinsic values are centered on external approval or rewards; for instance wealth, social status, self image and personal security.

  • Extrinsic value rises with increase volatility in the market.

Learn more about Extrinsic Value here:

https://brainly.com/question/14728234

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