The intrinsic value of an out-of-the-money call option is equal to

A) the call premium.
B) zero.
C) the stock price minus the exercise price.
D) the striking price.

Out-of-the-money

A term used in options trading referring to an option that has no intrinsic value. For a call option, it means the stock price is below the strike price; for a put option, it means the stock price is above the strike price.

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specified price within a specific time period.