What Is the 'Intrinsic Value' of an Option? ⎊ Path

What Is the ‘Intrinsic Value’ of an Option?

The intrinsic value of an option is the immediate profit that an option holder would realize if they exercised the option immediately. It is calculated as the difference between the underlying asset's current price and the option's strike price, but it can never be less than zero.

Only in-the-money (ITM) options have intrinsic value; at-the-money (ATM) and out-of-the-money (OTM) options have zero intrinsic value.

Define the Term “Intrinsic Value” for an Option Contract

How Does the Difference between Strike Price and Market Price Determine the Put Option’s Intrinsic Value?

What Is the Difference between an Option’s Intrinsic Value and Its Time Value at Expiration?

How Does the Relationship between the Strike Price and the Current Market Price Determine an Option’s Intrinsic Value?

What Is the Intrinsic Value of an Option?

How Does Token Vesting Conceptually Mirror the ‘Intrinsic Value’ of an Option?

What Is ‘Intrinsic Value’ in an Options Contract?

What Is the Difference between Intrinsic Value and Extrinsic Value of an Option?

Glossar

Intrinsic Value

Valuation ⎊ This represents the in-the-money amount of an option, calculated as the difference between the spot price and the strike price, if positive, otherwise zero.