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Sep 23, 2026Option premium: intrinsic vs extrinsic value, and why OTM options decay to zero - options trading, chapter 4
The premium splits into intrinsic value (already in the money) and extrinsic time value (which decays to zero by expiration). Moneyness, a worked example, and what an option is worth at expiry.
Sep 23, 20266 min read0 reactions0 comments