give an example of instrinsic value.
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Explanation:
Example : call option's strike price is $19 and the underlying stock's market price is $30, then the call option's intrinsic value is $11.
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Answer:The Intrinsic Value is the difference between a stock's market price and the option's strike price. For example, if a call option's strike price is $19 and the underlying stock's market price is $30, then the call option's intrinsic value is $11.
Example of an Option's Intrinsic Value
Let's say a call option's strike price is $15, and the underlying stock's market price is $25 per share. The intrinsic value of the call option is $10 or the $25 stock price minus the $15 strike price.
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