Options have intrinsic and market values:

Question

Quizplus · Accepted Answer

Intrinsic value for a call option is calculated as the excess of the current price of the underlying asset over the strike price of the option. For a put option, it's the opposite: the intrinsic value is the excess of the strike price over the current price of the underlying asset, not as stated in option C. Market value includes intrinsic value and time value, and it can be more or less than intrinsic value, making options A and D incorrect.

Options Have Intrinsic and Market Values