A 4-month call has a strike price of $20.The current underlying stock price is $21.45.What is the intrinsic value of this call?
A) $0.00
B) $0.48
C) $1.45
D) $3.90
E) $4.35

Name: A 4-month call has a strike price of $20.The current underlying stock price is $21.45.What is the intrinsic value of this call? A) $0.00 B) $0.48 C) $1.45 D) $3.90 E) $4.35
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Question

Quizplus · Accepted Answer

Intrinsic value = $21.45 - $20.00 = $1.45

A 4-Month Call Has a Strike Price of $20