ABC Corporation's stock is trading at $35. A client has purchased a 50 call. The option's current value is made up of

Intrinsic value is the expected or measured value determined by fundamental analysis of a business, stock, currency or commodity. In this case the intrinsic value is 50 call.

Tangible and intangible variables are included. The true value is often referred to as intrinsic value which may or may not be the same as the current market value.

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Tundexi Tundexi · Answer 2 · 2021-12-23T12:26:44+01:00

Since the client purchased a 50 call. the option's current value is made up of intrinsic value.

Intrinsic value refers to the expected or measured value determined by the fundamental analysis of a stock.

Here, the intrinsic value is 50 call.

True value of a stock are referred to as intrinsic value which may or may not be the same as the current market value.

Hence, since the client purchased a 50 call. the option's current value is made up of intrinsic value