Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'extrinsic value'?

A. revenue received during a period of time
B. price that that is expressed as a monetary amount
C. the cost of using credit, or another's money, expressed as a rate per period of time, payable by a debtor to a creditor in consideration of the credit extended to the debtor
D. measure of the difference between the market price of an option, called the premium, and its intrinsic value

Answer: measure of the difference between the market price of an option, called the premium, and its intrinsic value