The difference between a stock's current price and the striking price of the option is the minimum value of the option.

Question

Quizplus · Accepted Answer

This statement is true. The difference between a stock's current price (also known as the market price) and the striking price of the option is called the intrinsic value. This is the minimum worth of the option because if it were exercised immediately, this would be the amount of profit made.

The Difference Between a Stock's Current Price and the Striking