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Understanding Intrinsic vs. Extrinsic Value in Options (Yiddish)
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What’s the difference between intrinsic and extrinsic value in options? In this Yiddish video, you’ll learn: - How to calculate intrinsic and extrinsic value - Why understanding this is crucial for buying and selling options - Real-world examples so you don’t get confused again For education only. This is not financial advice.
Categories:Education/Finance
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Transcript
Auto-generated transcript. Not time-synced to the video.
My in lesson
extrinsic value [music] in options
components
options
makes no sense. So this is for
educational purposes only [music] and
So
in the options market, the premium
options
is the intrinsic value is the extrinsic
value.
[music]
The time value.
Okay guys,
time value
intrinsic value. intrinsic value of
mind. The value and the option
value
the stock is yet
and the strike price
when the market is same as do value.
This [music] is intrinsic value.
The stock is 500
value intrinsic value. This call options
put options
and [music] the strike price is dollar.
from the stock.
Then the general market is dollar
value.
[music]
This is out of the money intrinsic
value.
This is
value
in the money intrinsic value.
The intrinsic value and the extrinsic
value.
So combination.
So out of the money option extrinsic
value in the money option the intrinsic
value
and the extrinsic
the intrinsic value the premium is
extrinsic value
in the stock is the interest rates is
the dividend.
So
is the extrinsic value shrink over
life example.
is dollar
price
and call strike price is the premium
dollar is the intrinsic value is the
extrinsic value okay
the stock price is
and the call option strike is $100 minus
intrinsic value from the
>> [music]
>> dollar
value.
So,
North Finland
options.
[music]
So
the extrinsic value the intrinsic value
is pushing the stocks. Fore
value.
The stock option.
for
any please us in the comment section and
lesson please like and subscribe to the
channel other subscribing.com/black
>> [music]