You own two call option contracts on ABC stock with a strike price of $15. When you purchased the contracts the option price was $1.20 and the stock price was $15.90. What is the total intrinsic value of these options if ABC stock is currently selling for $14.50 a share?
A) -$280
B) -$180
C) -$100
D) $0
E) $100

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 ($14.50) is below the strike price ($15), the intrinsic value is $0.

You Own Two Call Option Contracts on ABC Stock with a Strike