Learn how to identify and measure the extrinsic value of options contracts.
You’ll learn that Extrinsic Value is simply the difference between the current market price of an option, called the premium, and its intrinsic value. In other words, Extrinsic value is the portion of the option premium value based on factors other than the underlying asset’s price, such as time until expiration, the implication of volatility and the risk-free rate of interest.
