Can an Option Have a Negative Intrinsic Value?

No, an option cannot have a negative intrinsic value. The intrinsic value is calculated as the immediate profit from exercising the option, ignoring the premium paid.

If exercising the option would result in a loss, the option simply has zero intrinsic value. For instance, if a call option's strike price is higher than the underlying asset's price, it would be illogical to exercise it, so its intrinsic value is considered zero, not a negative amount.

The option would simply not be exercised.