Options Pricing 101

Do you know how options are priced? OIC instructor Mark Benzaquen answers that question in this video. Learn about the intrinsic value vs. extrinsic value of an option as well as what it means to be in-the-money, at-the-money or out-of-the-money.

0:34 How are Options Priced?
5:00 Two Pricing Components - Intrinsic vs. Extrinsic Value
10:55 Calls - ITM, ATM, OTM
14:24 Puts - ITM, ATM, OTM