Intrinsic value and Time value of options : Options Trading For Beginners
In this video we learn what is Intrinsic value and Time value of options with REALTIME Example.
Call Options :
Intrinsic value = Current Stock Price(Spot Price) – Strike Price
Time Value(Extrinsic Value) = Call premium Options - Intrinsic value
Put Options :
Intrinsic value = Strike Price - Current Stock Price(Spot Price)
Time Value(Extrinsic Value) = Put premium Options - Intrinsic value