Last week,you purchased a call option on Denver,Inc. stock at an option price of $1.05. The stock price last week was $28.10. The strike price is $27.50. What is the intrinsic value per share if Denver,Inc. stock is currently priced at $29.03?
A) -$1.05
B) $0
C) $.48
D) $.93
E) $1.53

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is 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,Inc