A call option with a strike price of $110$ is selling for $3\mathrm{.}50$ when the market price of the underlying stock is $108.$ The intrinsic value of the call is: $($published CFP question, $1994)$

Group of answer choices

$2\mathrm{.}00$

$-2\mathrm{.}00$

$1\mathrm{.}50$

$0\mathrm{.}00$A call option with a strike price of $110$ is selling for $3\mathrm{.}50$ when the market price of the underlying stock is $108.$ The intrinsic value of the call is: $($published CFP question, $1994)$

Group of answer choices

$2\mathrm{.}00$

$-2\mathrm{.}00$

$1\mathrm{.}50$

$0\mathrm{.}00$