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Ok, the Premium is the full price of the contract... The intrinsic value is only on options that in in the money (price difference between current...
On the opposite end of that spectrum, if the option expires In the Money. Buyer spends $2,695 for the contract Seller collects $700 Option...
Here's an Example: TSLA - Strike $850 - Ask Price for 1 Option contract $26.95 - Exp 10/22 Extrinsic Value $19.95 Intrinsic Value $7.00 Buyer...
