Normal
For clarification.The option price can be described as extrinsic plus intrinsic value. ( in this case intrinsic value is zero )The option premium can be described as extrinsic value only.In this specific example, premium is the same as price. But where an option is In The Money, price will be different to premium as there will be intrinsic vale included.
For clarification.
The option price can be described as extrinsic plus intrinsic value. ( in this case intrinsic value is zero )
The option premium can be described as extrinsic value only.
In this specific example, premium is the same as price. But where an option is In The Money, price will be different to premium as there will be intrinsic vale included.
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