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17 August, 20:13

John purchases a call option with a strike price of $110 that is selling for $3.50 when the stock is trading at $108 per share. what is the intrinsic value of the call option

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  1. 17 August, 23:14
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    The intrinsic value of a call option can be calculated by subtracting the strike price from the market price ($108-$110=?). Therefore the intrinsic value of John's call option is $-2 or 0.
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