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Intrinsic value

The financial definition for Intrinsic value:

The value of an option if it were to expire immediately with the underlying stock at its current price; the amount by which an option is in-the-money. For call options, this is the difference between the stock price, if that difference is a positive number, or zero otherwise. For put options it is the difference between the striking price and the stock price, if that difference is positive, and zero otherwise. See also: In-the-Money, Time Value Premium, Parity.




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Intrinsic value of an option

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.




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