EDUCATION (CBSE/UGC NET)

Detailed explanation-1: -Examples of extrinsic values may be a desire to be appreciated, approved, or accepted by others to avoid negative emotions or punishment, or to meet certain standards. This difference is important as it highlights the different ways in which values can motivate us.

Detailed explanation-2: -What is Extrinsic Value? Extrinsic value measures the difference between the market price of an option, called the premium, and its intrinsic value. Extrinsic value is also the portion of the worth that has been assigned to an option by factors other than the underlying asset’s price.

Detailed explanation-3: -What is Extrinsic Value? Extrinsic value of an option is calculated by taking the difference between the market price of an option (also called the premium) and its intrinsic price – the value of an options contract in relation to the underlying at expiration or if exercised.

Detailed explanation-4: -An Extrinsic value is one which is a means to some other value. It is of instrumental worth only. Extrinsic or Instrumental values are the part of larger whole. They are means to an End. Wealth, Fame, physical fitness, etc.