Question: Consider the following equation: C = S - K + dis(K) + P - PV(Div) In this equation, dis(K) + P - PV(Div) tells us

Consider the following equation: C = S - K + dis(K) + P - PV(Div)

In this equation, dis(K) + P - PV(Div) tells us

A) the market value of the option.

B) the time value of the option.

C) the difference in the price of an American option over a European option because of dividend capture.

D) the intrinsic value of the option

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