The difference in monetary terms between the strike price of an option and the price of the underlying shares of a company less its time value. The value over and above the strike price of an option that would be received if the option were exercised and the option holder purchased the shares.
Related information about intrinsic value of an option:
- Intrinsic Value Definition | Investopedia
1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible ...
- Understanding Option Pricing
Apr 20, 2009 ... The intrinsic value of an option reflects the effective financial advantage that would result from the immediate exercise of that option. Basically, it ...
- Intrinsic Value + Time Value - Option Price
Intrinsic value: The intrinsic value of an option is the difference between the actual price of the underlying security and the strike price of the option. The intrinsic ...
- Intrinsic Value and Time Value - Yahoo! Finance
The intrinsic value of an option is not dependent on the time left until expiration. It is simply an option's minimum value; it tells you the minimum amount an option ...
- What is intrinsic value? definition and meaning
Mentioned in these terms. intrinsic value of an option. Browse by Letter: #ABCDE FGHIJKLMNOPQRSTUVWXYZ. Resources. Browse by subject · Tips · Answers ...
- Intrinsic Value of an Option - Financial Dictionary - The Free Dictionary
Intrinsic value of an option. The amount by which an option is in the money. An option that is not in the money has no intrinsic value. Intrinsic Value of an Option ...
- Intrinsic Value & Time Value - Options Trading Education - Optionetics
The intrinsic value of an option is not dependent on the time left until expiration. It is simply an option's minimum value; it tells you the minimum amount an option ...
- How Are Stock Options Priced? by OptionTradingpedia.com
The intrinsic value of an option contract remains the same as long as the price of the underlying asset do not change, however, the Extrinsic Value of that same ...