Last week, you purchased a call option on Denver at an option price of €1.05.The share price last week was €28.10.The strike price is €27.50.What is the intrinsic value per share if Denver is
Currently priced at €29.03?

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is calculated as the current stock price minus the strike price. Here, it is €29.03 - €27.50 = €1.53.

Last Week, You Purchased a Call Option on Denver at an Option