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What Is the Total Premium of an Option with $4 Intrinsic Value and $1.50 Time Value?

The total premium is $5.50.
Greeks.Live22.11.25

What Is the Total Premium of an Option with $4 Intrinsic Value and $1.50 Time Value?

The total premium of the option is the sum of its intrinsic value and its time value. Total Premium = $4.00 + $1.50 = $5.50.

This is the price the option buyer pays for the contract.

How Does Time Value (Extrinsic Value) Relate to an Option’s Total Premium?
If an Option Has $1 of Intrinsic Value and a $3 Premium, What Is the Time Value?
What Is the Relationship between an Option’s Intrinsic Value and Its Time Value?
How Is ‘Time Value’ Related to Intrinsic Value?

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