Intrinsic value of an option(redirected from Intrinsic Values of Options)
Intrinsic value of an option
Intrinsic Value of an Option
The profit that an option holder would receive by exercising an in-the-money option. That is, the intrinsic value of an option is how much the strike price is below the underlying asset (for a call) or above the underlying asset (for a put). These options have intrinsic value because they always result in a profit. As a result, they may be sold for a much higher price than the investor paid for the option.