Module 1 · Lesson 5 · 7 min

Intrinsic and extrinsic

What you'll be able to do

  • Label any call or put as in, at or out of the money.
  • Split a premium into intrinsic and extrinsic value.
  • Explain why extrinsic peaks at the money and fades to zero by expiry, and spot a quote below intrinsic.

This course is for members.

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