In scenario 2, the price is considered to be at 2030 which is below the strike of 2050, What about other strike prices such as 2045, 2040, 2035 etc? Can we generalize anything here with respect to the P&L? What would happen to the P&L at various possible prices of spot (upon expiry) - | would like to call these points as the “Possible values of the spot on expiry” and sort of generalize the P&L understanding of the call option. In order to do this, | would like to first talk about (in part and not the full concept) the idea of the ‘intrinsic value of the option upon expiry. The intrinsic value (IV) of the option upon expiry (specifically a call option for now) is defined as the non - negative value which the option buyer is entitled to if he Were to;exercise the alllOptiont In simple words ask yourself (assuming you are the buyer of a call option) how much money you would receive upon expiry, if the call option you hold is profitable. Mathematically itis defined as -