What is the intrinsic value of the March 30 call option?

Question

Quizplus · Accepted Answer

The intrinsic value of a call option is the difference between the current price of the underlying asset and the strike price of the option. In this case, the current price of the underlying asset is $34.25, and the strike price of the option is $30. Therefore, the intrinsic value is $4.25. Since each option contract represents 100 shares of the underlying asset, the intrinsic value of the option is $4.25 x 100 = $425. Subtracting the premium of $61.35 from the intrinsic value yields $363.65, which is closest to answer choice D of $3.65.

What Is the Intrinsic Value of the March 30 Call