The ________ is the stock 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 intrinsic value of an option is the difference between the current stock price and the exercise price. For a call option, this is the profit that could be made by exercising the option immediately. Therefore, A) intrinsic value is the correct answer. B) Time value refers to the additional value that an option may have due to the amount of time left before expiration. C) Stated value and D) Discounted value are not relevant concepts in options trading.

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