For call options, this is the difference between the underlying stock’s price and the strike price. For put options, it is the difference between the strike price and the underlying stock’s price. In the case of both puts and calls, if the respective difference value is negatice, the instrinsic value is given as zero.
Intrinsic calue in options is the in-the-money portion of the option’s premium. For example, If a call options strike price id $15 and the underlying stock’s market price is at $25, then the intrinsic value of the call option is $10. An option is usually never worth less than what an option holder can receive if the option is exercised.
Source: http://www.investopedia.com
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