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Finance Dictionary and Glossary of Investment Terms
intrinsic value
Definition 1.
Definition 1
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Definition 2.
1. The value of a company or an asset based on an underlying perception of the value. 2. 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 difference between the underlying stock's price and the strike price is negative, the value is given as zero.
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Definition 3.
The difference between an in-the-money option strike price and the current market price of the underlying security.
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