To profit from the growing popularity of ocean voyages, you take a long position in a call option on the shares of White Star Line, a steamship company whose shares are currently trading for $30. The call option expires in three months, has a strike price of $29, and has a premium of $3. What is the intrinsic value of the option?

Answer rating: 100% (QA)

The intrinsic value of a call option is the difference between the current stock price and the strik... View the full answer