Why Does a Higher Strike Reduce the Call Option's Intrinsic Value? ⎊ Path

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.

Define the Term “In-the-Money” (ITM) for Both a Call and a Put Option

How Does the Intrinsic Value of a Put Option Differ from a Call Option?

How Does a Dividend Yield Affect the Black-Scholes Model for Call Options?

Does IV Crush Affect the Intrinsic Value of an Option?

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

What Is a “Covered Call” and Why Does It Reduce Margin Requirement?

How Does an Increase in the Underlying Asset’s Price Affect the Value of a Call Option?

Define “Intrinsic Value” of an Option in the Context of Settlement