The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “What is the value of a call option on its expiry date?” This is a very simple answer. The value of any option contract at expiration, whether it’s a call or whether it’s a put option, is simply the intrinsic value. Once you get to expiration, there’s no more extrinsic value component left in the option contract. That means no more time value, no more volatility value, no more interest rate value. There’s just value left intrinsically in the difference between the strike price and where the stock price is right now. For the value of a call option, if a call option expires in the money, then it would have value between the strike price and the stock price. If you have a call option at a $99 strike and the stock expires at $100, then the intrinsic value is simply $1, the difference between $99 and $100 for your call option. If the stock expires at $100 and you have a call option