Intrinsic value (See Chapter 29 of the Vernimmen) The positive difference between the price of the underlying asset and the option’s strike price is called the intrinsic value of an option. For a put option, it is the opposite. By definition, intrinsic value is never negative. Intrinsic value (See Chapter 29 of the Vernimmen) The positive difference between the price of the underlying asset and the option’s strike price is called the intrinsic value of an option. For a put option, it is the opposite. By definition, intrinsic value is never negative. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

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Definitions of terms begining with the same letter as "Intrinsic value" :

IAS IASB IFRS IPO IPO discount IRR IRS IRS rate Identified purchase cost Idiosyncratic risk Ijara-wa-Iqtina Immunisation Impairment losses Impairment test Implicit rating In the money Incentive contracting Income Income statement Income stock Incoterms Incremental project Indenture Index management Index trackers Index-linked securities Indirect finance Indirect method Indirect valuation method Industrial synergy

Industry risk Inflation Inflation risk Information cascade Informational efficiency Informational mimicry Initial public offering, IPO Inside shareholders Institutional investors Insurance Intangible asset Intangible capital Intangible fixed asset Interchangeability Interest Interest charge Interest cost – pensions Interest cover Interest expense Interest rate Interest rate option Interest rate risk Interest rate swap rate, IRS rate Interest rate swap, IRS Interest-bearing current account Interim interest payments Intermediated debt Intermediation Internal capital Internal financing

Internal growth model Internal rate of return, IRR International bond Intra-annual dividend Intra-group transactions Intrinsic risk Intrinsic value Intrinsic value – option Intrinsic value – share Inventories Inventories valuation methods Inverse floaters Invested capital Investment Investment banking Investment cycle Investment decision principles Investment grade Investment of funds method Investment outflows Investment outlay Investors Islamic finance Issue at a discount Issue at a premium Issue at par Issue discount Issue price Issuers and holders prefer the term High yield bonds. Istisna’a