Intrinsic value of a call
A call option has strike $50; the underlying trades at $58. What is the option's intrinsic value (in dollars)?
Show hints (2)+
- Intrinsic value = $\max(S-K,0)$.
- $58-50$.
Answer
Reveal answer →Final answer
8
Want the full step-by-step worked solution? It's part of Premium — along with a worked solution for every question in the bank.
Asked at: Optiver, Akuna Capital