Printer Friendly
The Free Dictionary
989,320,957 visitors served.
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

Intrinsic value of an option

    0.03 sec.
Intrinsic value of an option
The amount by which an option is in the money. An option that is not in the money has no intrinsic value.

?Page tools
Printer friendly
Cite / link
Email
Feedback
Add definition
? Mentioned in ? References in periodicals archive
No references found
 
The stock price and option exercise price combine to create the intrinsic value of an option.
First, the intrinsic value of an option refers to the excess (if any) of the stock's value over the exercise price.
The intrinsic value of an option is the difference between the underlying stock's exercise price and its FMV (the bargain element of the option).
 
Financial browser? ? Full browser
 
 
Financial Dictionary
?

Disclaimer | Privacy policy | Feedback | Copyright © 2008 Farlex, Inc.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional. Terms of Use.