An out-of-the-money option has no intrinsic value.

Name: An out-of-the-money option has no intrinsic value.
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Question

Quizplus · Accepted Answer

An out-of-the-money option does not have intrinsic value because its strike price is not favorable compared to the current market price of the underlying asset; for a call option, the market price is below the strike price, and for a put option, the market price is above the strike price.

An Out-Of-The-Money Option Has No Intrinsic Value