The intrinsic value of an at-the-money call option is equal to
A)the call premium.
B)zero.
C)the stock price plus the exercise price.
D)the striking price.
E)None of the options

Name: The intrinsic value of an at-the-money call option is equal to A)the call premium. B)zero. C)the stock price plus the exercise price. D)the striking price. E)None of the options
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Question

Quizplus · Accepted Answer

The fact that the owner of the option can buy the stock at a price equal to the market price gives the contract an intrinsic value of zero.

The Intrinsic Value of an At-The-Money Call Option Is Equal