What is the intrinsic value of the call?
A)$12
B)$8
C)$0
D)$23
E)none of the above.

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the current market price of the underlying asset and the strike price of the option. In this case, the current market price of the asset is $20 and the strike price is $12. Therefore, the intrinsic value of the call option is $8 ($20 - $12). Option B corresponds to this value, so it is the best choice.

What Is the Intrinsic Value of the Call