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. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Intrinsic value of an option — The amount by which an option is in the money. An option which is not in the money has no intrinsic value. Related: in the money. The New York Times Financial Glossary …   Financial and business terms

  • Intrinsic value of an option —   The greatest of zero and the difference between the present market price of the underlying object and the exercise price of an option. See also Theoretical value of a financial instrument …   International financial encyclopaedia

  • intrinsic value — The amount by which an option is in the money. An option having intrinsic value. A call option is in the money if its strike price is below the current price of the underlying futures contract. A put option is in the money if its strike price is… …   Financial and business terms

  • Intrinsic value (finance) — In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself. It is also frequently called fundamental value. It is ordinarily calculated by summing the future income generated by the… …   Wikipedia

  • Intrinsic value — can refer to:*Intrinsic value (finance), of an option or stock. *Intrinsic value (numismatics), of a coin. *Intrinsic value (ethics), in philosophy. *Intrinsic theory of value, an economic theory of worth. ee also* Extrinsic value * Value …   Wikipedia

  • intrinsic value — n. The inherent value of a thing, which remains constant regardless of place, time, or special features that affect its market value. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008.… …   Law dictionary

  • Intrinsic Value — 1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market… …   Investment dictionary

  • intrinsic value — The difference between the market value of the underlying in a traded option and the exercise price when the option is in the money . Otherwise the intrinsic value is zero. See also time value …   Big dictionary of business and management

  • intrinsic value — /ɪnˌtrɪnsɪk vælju:/ noun a value which exists as part of something, such as the value of an option (for a call option, it is the difference between the current price and the higher striking price) …   Dictionary of banking and finance

  • intrinsic value — Fin the extent to which an option is in the money …   The ultimate business dictionary

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