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Which one of the following describes the intrinsic value of a call option?

User Dma
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1 Answer

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Final answer:

The intrinsic value of a call option is the difference between the strike price and the current price of the underlying asset.

Step-by-step explanation:

The intrinsic value of a call option is the value that it would have if it were exercised immediately. It is the difference between the strike price of the option and the current price of the underlying asset. If the intrinsic value is positive, it means the option is in-the-money and would result in a profit if exercised.

User DavidsKanal
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