... reduced for out- of- the- money options,let’s review the concepts of in, at, and out of the money. Ingeneral, options are in the money when it is profitable toexercise them, and out of the money ... 46.25, then the 50 call is3.75 points out of the money. The option has nointrinsic value. Again, the price of the option itselfmakes no difference.●If XYZ is trading exactly at 50, then the ... (reduced byany out of the money amount, but not less than 10 per-cent of the underlying’s value) plus the premium.Note: You must calculate 20 percent of the market value of 100shares of the underlying...