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SIE: Options
SIE practice questionmediumIntrinsic value

A call with a $45 strike and the underlying at $60 has what intrinsic value?

  1. A$60
  2. B$45
  3. C$15✓ Correct answer
  4. D$0
Explanation

Why C$15

Call intrinsic value is market minus strike ($60 - $45). The other numbers misunderstand the calculation.

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