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Why Does a Higher Strike Reduce the Call Option’s Intrinsic Value?

Higher strike reduces intrinsic value because Intrinsic Value = Underlying Price - Strike Price.
Greeks.Live22.11.25

Why Does a Higher Strike Reduce the Call Option’s Intrinsic Value?

A higher strike price reduces a call option's intrinsic value because intrinsic value is the difference between the underlying price and the strike price. A higher strike means the underlying price has to rise further to be ITM, or the ITM amount is smaller.

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