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Options Trading 101: Intrinsic Value and Time Value

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Options Trading 101: Intrinsic Value and Time Value

For investors interested in getting started with options, the way these instruments work can seem intimidating. An option's price is made up of two components: intrinsic value and time value.

In this segment from Motley Fool Live that first aired May 7, Motley Fool Canada analyst Jim Gillies and Fool.com editor/analyst Ellen Bowman discuss how each one works.

Source Fool.com

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