Chapter 03 · Section 3.1
The Intrinsic Value of a Call Option
The intrinsic value of a call option is equal to:
a) the price of the underlying asset.
b) the exercise price.
c) the price of the underlying asset minus the exercise price.
d) the exercise price minus the price of the underlying asset.
If the price of the underlying asset is 100 and the excercise price of the option is 90, the intrinsic value would be 10.