The Intrinsic Value of a Long Call Option

The intrinsic value of a long call option:

A) Falls and rises with the price of the underlying commodity, but is always positive
B) Rises if the price of the underlying commodity falls and vice versa
C) Depends solely on the volatility of the price of the underlying commodity
D) Becomes negative if the market price of the underlying commodity falls below the strike price of the option

Correct Answer:

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