You own six call option contracts on Neilson Markets stock with a strike price of $30. When you purchased the shares the option price was $.45 and the stock price was $30.10. What is the total
Intrinsic value of these options if the stock is currently selling for $29.70 a share?
A) -$180
B) -$30
C) $0
D) $30
E) $180

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the stock price and the strike price, but only if the stock price is above the strike price. Since the current stock price ($29.70) is below the strike price ($30), the intrinsic value is $0.

You Own Six Call Option Contracts on Neilson Markets Stock