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Extrinsic value is the portion of an option's price that is not due to its intrinsic value (the actual value of the underlying asset at that point in time). It is influenced by factors such as time until expiration, volatility of the underlying asset, and interest rates. High extrinsic value is typical of options with longer expiration dates or higher levels of implied volatility.

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What is the difference between intrinsic and extrinsic feedback?

Intrinsic feedback to a learning experience is a transformational change in how someone thinks about a subject. A teacher may praise the skills of the student. Extrinsic feedback is more like a grade or a prize for effort.


How do the predictions of self determination theory apply to intrinsic and extrinsic rewards?

Self-determination theory suggests that intrinsic motivation arises from internal factors like autonomy, competence, and relatedness, leading to sustained engagement in activities. Extrinsic rewards, on the other hand, may undermine intrinsic motivation if they control behavior. The theory highlights the importance of balancing intrinsic and extrinsic rewards to support individuals' autonomy and foster long-term motivation.


What are the similarities between intrinsic motivation and extrinsic motivation?

Here are definitions, one can find similarities just by reading them. Intrinsic Motivation: "The motivation or desire to do something based on the enjoyment of the behavior itself rather than relying on or requiring external reinforcement." eg. doing a hobby that you like, or volunteering on your own accord Extrinsic Motivation: "The desire or push to perform a certain behavior based on the potential external rewards that may be received as a result." eg. studying for a test in order to pass, going to work so you don't get fired, etc.


What is present value analysis?

Present value analysis is a financial technique used to evaluate the value of future cash flows by discounting them back to their current value. It takes into account the time value of money, allowing for better decision-making by comparing the present value of costs and benefits. The goal is to determine whether an investment or project is worth pursuing based on its potential return.


What type of learning style characterizes a person who is motivated to learn by external rewards and the desire to be viewed in a good light by others?

This type of learning style is typically associated with extrinsic motivation, where individuals are driven by external rewards such as praise, grades, or competition. They may be more focused on meeting others' expectations and seeking approval rather than on intrinsic motivation or personal interest in the subject matter.

Related Questions

What are the examples of intrinsic and extrinsic value?

There are many examples of intrinsic values which include morals, honesty, kindness, humility and so on. Extrinsic value examples include monetary value of a house, price of a car and so on.


Is miscibility a extrinsic or intrinsic?

Extrinsic


An extrinsic motivator?

An extrinsic motivator


Which is a good conductor (Extrinsic or Intrinsic)?

Extrinsic


How do you calculate stock options?

The price of stock options depends on 5 main factors:1. strike price in relation to the prevailing price of the stock2. Dividends3. Risk free interest rate4. time to expiration5. volatilityItem 1 determines the intrinsic value while the other 4 items determines the extrinsic value. Intrinsic value + extrinsic value = price of an option.


What is the difference between intrinsic and extrinsic?

Extrinsic is external; intrinsic is internal.


Is extrinsic a physical property?

No, extrinsic properties are not physical properties. Extrinsic properties refer to characteristics that are not inherent to an object but are instead dependent on external factors or conditions. Examples include color, weight, and odor.


Extrinsic factors are factors having to do with what?

Extrinsic factors are outside influences.


What is extrinsic sugar?

Extrinsic sugar is free in foods or it is added, it's not natural.


What is the nuclear membrane's outer layer called?

Extrinsic membrane Extrinsic membrane


In what cases is catatonia classified as extrinsic?

If the condition has an identifiable cause, it is designated as extrinsic.


The extrinsic muscle of the hand originate on the what?

Extrinsic muscles of the hand originate in the antebrachium (forearm).