Go back to �Part 1�EXAMPLES FOR INTRINSIC VALUE & TIME VALUE CALCULATION:For Call Option:Current stock price = $30.The price of Call option with Strike Price of $20 = $12This call option is In-The-Money (ITM) option because Strike Price ($20) < Stock Price ($30).Intrinsic Value = Stock Price � Strike Price = $30 � $20 = $10.Time value = Option price � Intrinsic Value (if any) = $12 - $10 = $2Here, the call option is said to be In-The-Money with intrinsic value of $10, as it allows the call option buyer to immediately buy a $30 stock at $20 the moment he bought it.Current stock price = $30.The price of Call option with Strike Price of $40 = $0.5This call option is Out-Of-The-Money (OTM) option because Strike Price ($40) > Stock Price ($30).Intrinsic Value = 0 (No intrinsic value for...