ANSWERS: 1
  • There are two components 'intrinsic value' and 'time value' in an option premium. The intrinsic value is the gross profit that will be realized upon immediate exercise of the option. This means that the intrinsic value is the amount by which the portion is in-the-money. An option that is out-of-the-money or at-the-money has no intrinsic value. Please visit: http://www.ismarkets.com for all the information that you may need.

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