EFTA Document EFTA01353413

call would be only $4. Should the price of the stock drop to $40 or below, the call would no longer have any intrinsic value. EXAMPLE OF A PUT WITH INTRINSIC VALUE: At a time when the current market price of XYZ stock is $46 a share, an XYZ 50 put would have an intrinsic value of $4 a share. Were the market price of XYZ stock to increase to $50 or above, the put would no longer have any intrinsic value. EXAMPLE OF TIME VALUE: At a time when the market price of XYZ stock is $40 a share.