Why is intrinsic value considered important for investors? Option: "It reveals the exact date a company will become profitable.", "It predicts short-term fluctuations in stock prices.", "It guarantees a specific return on investment.", "It helps determine if a stock is overpriced or underpriced."

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Why is intrinsic value considered important for investors?

"It reveals the exact date a company will become profitable."

"It predicts short-term fluctuations in stock prices."

"It guarantees a specific return on investment."

"It helps determine if a stock is overpriced or underpriced."

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What is the intrinsic value of a stock?

"The fundamental value of a stock based on its financial performance and future prospects."

"The price suggested by popular investment websites."

"The price a stock is expected to reach in the next year."

"The price calculated using complex technical analysis indicators."

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What is the primary focus of fundamental analysis in stock selection?

Identifying market trends

Determining the intrinsic value of a company

Predicting short-term price movements

Analyzing historical chart patterns

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What is the intrinsic value of an option?

"The difference between the strike price and the market price"

"The potential profit from exercising the option"

"The time value remaining until the option expires"

"The price paid for the option contract"

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Why is analyzing the 52-week high and low values of a stock important for intraday trading?

"To assess the company's overall financial health"

"To determine the company's long-term growth potential"

"To predict future dividend payouts"

"To identify potential entry and exit points based on historical price fluctuations"

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How is the intrinsic value of a call option calculated?

"Spot Price x Strike Price"

"Strike Price - Spot Price"

"Spot Price - Strike Price"

"Spot Price / Strike Price"