A call option has a strike price of $80. If the underlying stock is selling for $83 on the expiration date, the intrinsic value of the call option is __________ per share.
A) $163
B) $83
C) $3
D) $0

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is calculated as the difference between the stock price and the strike price. So in this case, the intrinsic value is $3 ($83 - $80). Therefore, the correct choice is C.

A Call Option Has a Strike Price of $80