If a call option's exercise price is above the stock price,then the option's intrinsic value is zero.

Name: If a call option's exercise price is above the stock price,then the option's intrinsic value is zero.
Brand: Quizplus
Rating: 4.8 (42 reviews)

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the stock price and the exercise price. If the exercise price is above the current stock price, there is no intrinsic value as the option would not be profitable to exercise. Therefore, the intrinsic value is zero.

If a Call Option's Exercise Price Is Above the Stock