What Is the Intrinsic Value of an At-the-Money Call Option? ▴ Learn

What Is the Intrinsic Value of an At-the-Money Call Option?

The intrinsic value of an at-the-money (ATM) call option is zero. An ATM option is one where the underlying asset's current price is exactly equal to the option's strike price.

Since the intrinsic value for a call is calculated as the greater of (Asset Price – Strike Price) or zero, and the difference is zero, the intrinsic value is zero. The entire premium of an ATM option consists solely of time value.

How Does the Difference between Strike Price and Market Price Determine the Put Option’s Intrinsic Value?

What Is the Significance of the Strike Price Being Equal to the Current Market Price?

Can an Option Have a Negative Intrinsic Value?

What Happens to the Moneyness of a Call and a Put Option If the Underlying Asset’s Price Equals the Strike Price Exactly at Expiration?