Consider stock ABC, which is currently trading at $105 per share. Remember, these call options contain the right to buy ABC at the strike at any time through the expiration date. We'll evaluate different strike prices of ABC call options, all with the same expiration date:

• The $95 and $100 strike price options are in-the-money. They have intrinsic values of $10 and $5 per share, respectively. The market price ($105) minus the strike price gives us the intrinsic value. These options also have extrinsic values of $2 and $3 per share, respectively—the extra amount on top of the intrinsic value.
• The $105 strike price option is at-the-money since the strike price equals the market price. It has no intrinsic value, as buying the stock at the market price offers no advantage. Its entire $5 premium is extrinsic value.
• The $108 strike price option is out-of-the-money. With the market price ($105) below the strike price, it would not make sense to exercise this option. It has no intrinsic value, and its premium of $4 is entirely extrinsic value.