From 144ea92bd184b1cd91f0af35c8aa288e97d1ed5f Mon Sep 17 00:00:00 2001 From: avorobiev Date: Mon, 28 Jul 2025 17:58:07 +0300 Subject: [PATCH] Correct intrinsic and time value calculation in AAPL example --- .../01 General Features of Options/04 The Value of Options.html | 2 +- 1 file changed, 1 insertion(+), 1 deletion(-) diff --git a/06 Introduction to Options[]/01 General Features of Options/04 The Value of Options.html b/06 Introduction to Options[]/01 General Features of Options/04 The Value of Options.html index f0877cc..b392bbd 100755 --- a/06 Introduction to Options[]/01 General Features of Options/04 The Value of Options.html +++ b/06 Introduction to Options[]/01 General Features of Options/04 The Value of Options.html @@ -12,5 +12,5 @@ \[Time Value= Premium-Intrinsic Value\]

-For example, an AAPL call option contract which expires after 10 days has strike $143 and premium $10. now the market price of AAPL is $160. The intrinsic value of this contract is 160-143=$17, the time value is 17-10=$7. Although the intrinsic value of OTM and ATM options is zero, they have time values if they still have a certain amount of time until the option expires so for OTM and ATM options, their premiums equal their time values. +For example, an AAPL call option contract which expires after 10 days has strike $143 and premium $10. now the market price of AAPL is $150. The intrinsic value of this contract is 150-143=$7, the time value is 10-7=$3. Although the intrinsic value of OTM and ATM options is zero, they have time values if they still have a certain amount of time until the option expires so for OTM and ATM options, their premiums equal their time values.