What Is the Maximum Intrinsic Value an Option Can Have?
Theoretically, there is no maximum limit to the intrinsic value of an option, especially for a call option. Since the price of the underlying asset, like a cryptocurrency, can rise indefinitely, the difference between the underlying price and the strike price (intrinsic value) can also grow without a cap.
For a put, the maximum intrinsic value is the strike price itself.
Glossar
Maximum Intrinsic Value
Value ⎊ Maximum Intrinsic Value for an option is achieved when it is exercised at the point where the difference between the underlying price and the strike price is maximized, which essentially occurs when the option is extremely deep in the money.
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.