Intrinsic Value

What is Intrinsic Value?

Intrinsic Value meaning A measure of the value of an option or a warrant if immediately exercised, that is, the extent to which it is in-the-money. The amount by which the current price for the underlying commodity or futures contract is above the strike price of a call option or below the strike price of a put option for the commodity or futures contract.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary