Intrinsic Value Formula

[sunandaC]

The intrinsic value of an option corresponds to the relationship between

the option’s strike price and the current price of the underlying asset.

The intrinsic value is the amount that an option is In-the-money (ITM).

Out-of-the-money (OTM) options have no intrinsic value.

CALL INTRINSIC VALUE

Current Stock Price – Strike Price = Call Intrinsic Value

PUT INTRINSIC VALUE

Strike Price – Current Stock Price = Put Intrinsic Value

 

[rosemarry2]

The intrinsic value of an option corresponds to the relationship between

the option’s strike price and the current price of the underlying asset.

The intrinsic value is the amount that an option is In-the-money (ITM).

Out-of-the-money (OTM) options have no intrinsic value.

CALL INTRINSIC VALUE

Current Stock Price – Strike Price = Call Intrinsic Value

PUT INTRINSIC VALUE

Strike Price – Current Stock Price = Put Intrinsic Value

hey buddy,

Here I am uploading Notes on Intrinsic Valuation, so please download and check it.