SIE practice questionmediumIntrinsic value
A call with a $45 strike and the underlying at $60 has what intrinsic value?
- A$60
- B$45
- C$15✓ Correct answer
- D$0
Explanation
Why C — $15
Call intrinsic value is market minus strike ($60 - $45). The other numbers misunderstand the calculation.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Options questions
- If an option is out of the money, what does its premium consist of?
- When is a call seller 'assigned'?
- An investor expects high volatility but is unsure of direction. Which is the most appropriate options strategy?
- A protective put limits losses on a stock to:
- A trader simultaneously buys a March 50 call at $7 and sells a March 55 call at $3. What's the maximum profit per share?
- If a covered call is exercised, what happens to the investor’s stock position?
- The maximum gain in a debit put spread is calculated as:
- Which option is most likely to have the highest time value, all else equal?