The intrinsic value of an out-of-the-money call option is equal to
A) the call premium.
B) zero.
C) the stock price minus the exercise price.
D) the striking price.

Name: The intrinsic value of an out-of-the-money call option is equal to A) the call premium. B) zero. C) the stock price minus the exercise price. D) the striking price.
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Question

Quizplus · Accepted Answer

The intrinsic value of an out-of-the-money call option is zero because the stock price is below the exercise price, making it not beneficial to exercise the option.

The Intrinsic Value of an Out-Of-The-Money Call Option Is Equal