A call option has a strike price of $48. If the underlying stock is selling for $45 on the expiration date, the intrinsic value of the call option is __________ per share.
A) $93
B) $45
C) $3
D) $0

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the strike price and the current market price. In this case, the market price ($45) is less than the strike price ($48), so the intrinsic value is zero. Therefore, the correct answer is D.

A Call Option Has a Strike Price of $48