Learn How to Trade Options

Learn about intrinsic value and time value and how they affect an option's price.
CIBC Investor's Edge 6-minute read

Understand intrinsic value and time value

Intrinsic value

Strike price of option Call option Put option

Time value

How time value erodes

Longer-dated versus shorter-dated options

Other factors that contribute to an option’s price

Implied volatility


Current risk-free interest rate

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