Dictionary Home »
Invest » intrinsic value
intrinsic value investment & finance definition
The
value of an option that is in-the-money, or that still has value. If a call
option can be used to buy a stock at a strike price (the price at which the
option allows the stock to be bought) of $50, and the market price is $55, then
the intrinsic value is $5.
See intrinsic value in Wall Street Words
Learn more about intrinsic value