The ________ is the share price minus exercise price, or the profit that could be attained by immediate exercise of an in-the-money call option.
A)intrinsic value
B)time value
C)stated value
D)discounted value

Question

Quizplus · Accepted Answer

The definition provided in the question refers to the intrinsic value of a call option. The time value refers to the portion of the option premium that is due to the remaining time until expiration, and is above the intrinsic value. Stated value and discounted value are not relevant terms in the context of options trading.

The ________ Is the Share Price Minus Exercise Price, or the Profit