The intrinsic value of an in-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.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

The intrinsic value of an in-the-money call option is calculated as the current stock price minus the exercise price of the option. This represents the immediate exercise value of the option.

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