What is the intrinsic value of the August 25 call? $$\begin{array}{l}
\text { KNJ (KNJ) Underlying share price: } 30.86\
\begin{array} { | l | l | l | l | }
\hline & & \text { Call } & \text { Put } \
\hline \text { Expiration } & \text { Strike } & \text { Last } & \text { Last } \
\hline \text { Aug } & 25 & 6.15 & .05 \
\hline \text { Nov } & 25 & 6.60 & 10 \
\hline \text { Aug } & 35 & 10 & 4.60 \
\hline \text { Nov } & 35 & 70 & 5.10 \
\hline
\end{array}
\end{array}$$

Question

What is the intrinsic value of the August 25 call? $$\begin{array}{l}
\text { KNJ (KNJ) Underlying share price: } 30.86\
\begin{array} { | l | l | l | l | } 
\hline & & \text { Call } & \text { Put } \
\hline \text { Expiration } & \text { Strike } & \text { Last } & \text { Last } \
\hline \text { Aug } & 25 & 6.15 & .05 \
\hline \text { Nov } & 25 & 6.60 & 10 \
\hline \text { Aug } & 35 & 10 & 4.60 \
\hline \text { Nov } & 35 & 70 & 5.10 \
\hline
\end{array}
\end{array}$$

Quizplus · Accepted Answer

The intrinsic value of a call option is calculated as the current underlying share price minus the strike price, provided this value is positive (otherwise, it's 0). For the August 25 call, the intrinsic value is $30.86 - 25 = 5.86$.

What Is the Intrinsic Value of the August 25 Call