The intrinsic value of an out-of-the-money call option ________.
A) is negative
B) is positive
C) is zero
D) cannot be determined

Name: The intrinsic value of an out-of-the-money call option ________. A) is negative B) is positive C) is zero D) cannot be determined
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Question

Quizplus · Accepted Answer

The intrinsic value of an out-of-the-money call option is zero because the option's strike price is above the current market price of the underlying asset, meaning there is no inherent profit in exercising the option.

The Intrinsic Value of an Out-Of-The-Money Call Option ________