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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.

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Steven Huddart
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was last updated on Wed, Oct 7, 2009.
Today is Fri, Nov 27, 2009.

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