The intrinsic value of a call option measures how far the market price of a stock exceeds the option’s strike price. This video explains how to identify in-the-money call options, calculate their intrinsic value, and apply the concept under exam conditions.
You’ll learn:
How to calculate intrinsic value for call options
What makes a call in-the-money, at-the-money, or out-of-the-money
The role of strike price vs. market price
The difference between intrinsic value and time value
How exam questions typically test this concept
📘 Related Exams: SIE, Series 6, Series 7, Series 9, Series 63, Series 65, Series 66
🧠 Skill Level: Beginner
📈 Topics Covered: Options pricing, intrinsic value, call strategy, strike price vs. market value
The intrinsic value of a put option represents the amount it’s in-the-money—how far the strike price is above the current market price of the underlying stock. This video simplifies the concept and shows you how to apply it accurately on exam questions.
You’ll learn:
How to calculate intrinsic value for put options
The relationship between strike price and market value
What makes a put in-the-money, at-the-money, or out-of-the-money
How intrinsic value differs from time value
Common exam setups that test this concept
📘 Related Exams: SIE, Series 7, Series 9, Series 63, Series 65, Series 66
🧠 Skill Level: Beginner
📈 Topics Covered: Options pricing, intrinsic value, in-the-money definitions, put option strategy
