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What Is the Formula for Calculating the Intrinsic Value of an ITM Put Option?

Intrinsic Value = Strike Price - Underlying Price (if positive, otherwise zero).
Greeks.Live14.11.25

What Is the Formula for Calculating the Intrinsic Value of an ITM Put Option?

The intrinsic value of an ITM Put option is calculated by subtracting the underlying asset's current market price from the option's strike price. For example, if Bitcoin is at $40,000 and the Put strike is $42,000, the intrinsic value is $2,000.

This value represents the immediate profit if the option were exercised. If the result is negative, the intrinsic value is zero.

How Is the Intrinsic Value of an ITM Put Option Calculated?
How Does the Difference between Strike Price and Market Price Determine the Put Option’s Intrinsic Value?
How Does the “Skew” of Implied Volatility Influence Delta Calculation?
How Is the Intrinsic Value of an ITM Call Option Calculated?

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