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Intrinsic value


The value received before tax from immediate exercise of an option; the amount by which the option is In the money.

For a Call option, it is the share price minus the strike price if the number is positive, and zero otherwise.

For a Put option, it is strike price minus share price if the number is positive, and zero otherwise.


Steven Huddart
Smeal College of Business, Penn State University, University Park, PA 16802-3603 USA
(814) 865-0041
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http://personal.psu.edu/sjh11/OptionGlossary/IntrinsicValue.shtml
was last updated on Fri, Dec 16, 2016.
Today is Tue, Oct 17, 2017.

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