Definitions for **"intrinsic value"**

The actual value of a security, as opposed to its market price or book value....

In archives administration, the value of those permanent records that should be preserved in their original form rather than as copies.

Amount of any favourable difference between the strike price of an option and the current price of the underlying (i.e., the amount by which it is in-the-money). The intrinsic value of an out-of-the-money option is zero.

The dollar amount that would be realized if the option were to be exercised immediately.

The economic value of a financial contract, as distinct from the contract's time value. One way to think of the intrinsic value of the financial contract is to calculate its value if it were a forward contract with the same delivery date. If the contract is an option, its intrinsic value cannot be less than zero. Knock-in Option ( see also Knock-Out Option; Trigger Price) An option the existence of which is conditional upon a pre-set trigger price trading before the option's designated maturity. If the trigger is not touched before maturity, then the option is deemed not to exist.

A call option's intrinsic value is equal to the number of points the underlying contract exceeds the strike price of the option.. An option premium will never be less than the option's intrinsic value. egs When the market trades in one direction, then reverses itself, and then reverses itself again, resuming the initial trend. Each reversal time period is known as a "leg" of the trend. In spread trading involving two contracts, one long and one short, each position (long or short) is known as a "leg" of the spread.

It can be used at least two ways. One: It describes the present value of future earnings and/or dividends. Two: With options, it is the difference between the option exercise price and the market.

the value of a coin's metal, irrespective of its face or collector value

Value of an organism, species, ecosystem, or the earth's biodiversity based on its existence, regardless of whether it has any usefulness to us. Compare instrumental value.

The absolute value of the in-the-money amount; that is, the amount that would be realized if an in-the-money option were exercised.

The value of an option if it were to be immediately exercised. If the option's strike price is in-the-money, then it has positive intrinsic value. If the strike price is if out-of-the-money, then the option's intrinsic value is zero.

Value awarded to each share when the value of a company is calculated taking as indicators its economic activity, its development, expectations, growth, etc.

For call options: The amount the market price of the underlying security is above the option's strike price. Eg, an IBM call option with a strike price of 100 with IBM stock at 110, has an intrinsic value of 10 & is “in-the-money.” If IBM were at 95, the call option would have no intrinsic value & would be “out-of-the-money.” If IBM were at 100, there would still be no intrinsic value, but the option would be “at-the-money.” For put options: The amount the market price of the underlying security is below the option's strike price. Eg, a Xerox put with a strike price of 35 with Xerox at 30, has an intrinsic value of 5. If Xerox were at 35 or higher, the put option would have no intrinsic value. See also Premium, Strike Price & Time Value.

The value of an option. The intrinsic value indicates how much an option is In the Money. Calculated by taking the difference between the forward market value of the underlying instrument and the strike price of the option. Out of and At the Money options have zero intrinsic value. See Time Value.

Used in connection with options and warrants. For a call option or a warrant on shares, it is the amount by which the share price exceeds the exercise price of the option or warrant. For a put option, it is the amount by which the exercise price exceeds the share price, i.e. it is the net amount received if an investor exercises the warrant or option and then closes out the position by buying a share (for a put option) or selling a share (for a call option or a warrant). For example, a call option with an exercise price of 100p when the share price is 150p has intrinsic value of 50p. The holder of the option could exercise the option, buying a share for 100p and then immediately sell the share for 150p, giving a net pay off of 50p. Intrinsic value has a minimum value of zero, since an investor would never exercise an option to give a loss.

The amount by which a market is in-the-money. Out-of-the-money options have no intrinsic value. Calls = underlying - strike price. Puts = strike price - underlying.

The difference between the exercise price of an option and the market value of the underlying instrument.

The underlying or inherent value of a stock, as determined through fundamental analysis.

A company's intrinsic value, or underlying value, is used to calculate its projected worth. You determine intrinsic value by subtracting a company's long-term debt from its anticipated future assets, including profits, the potential for increased efficiency, and the sale of new company share. Some experts also calculate intrinsic value by dividing the company's estimated future earnings by the number of its existing shares. This method weighs the current price of a share against its future worth. Critics of using intrinsic worth as a way to evaluate potential investments point out that all of the numbers except debt are hypothetical.

exists when the exercise price of a call option is below (or of a put option is above) the current market price of the underlying security.

The worth of an entity independent from external circumstances or its value to humans; value judged on inherent qualities of an entity rather than value to other entities.

The amount of money that could be realised if the Option were to be exercised immediately (out-of-the-money Options have no intrinsic value).

The melted down or bullion value of a precious metal coin. This value often bears no relation to the face value or denomination of the coin.

The economic value of an asset.

The market price of the underlying share less the exercise price of the option but not less than zero.

That portion of an option’s premium that represents the amount an option is in-the-money.

the value of a coin's metal content.

The metal or bullion value of a coin, regardless of the face value of the coin.

The difference between the market value of the underlying securities and the exercise price of the option. Usually it is not less than zero. It represents the advantage the taker has over the current market price if the option is exercised.

For a put option, the strike price minus the price of the underlying futures contract, if positive; otherwise, the intrinsic value is zero. For a call option, the price of the underlying futures contract minus the strike price, if positive; otherwise, the intrinsic value is zero.

The intrinsic value of an option corresponds to the difference between the current market price of the underlying contract and the exercise price of the option provided this entails a price advantage for the buyer. The intrinsic value is always zero or bigger than zero.

a value which derives from an intention or appetite that is an end in itself, and is not purely instrumental to other intentions and appetites

An analytical judgment of value based on the perceived characteristics inherent in the investment as distinguished from the current market price.

The portion of an option's premium that is represented when the cash market price is greater that the exercise price; a known constant equal to the difference between the strike price and underlying market price.

In the context of options valuation, it refers to the extent to which an option is in-the-money. In the context of company valuation, it commonly refers to the discounted value of future net cash flows expected to be generated by the company or the value of the company's underlying businesses less net borrowings.

Value of a business based on forecasted cash flows plus Terminal Value.

A form of judgement that takes into account all the values present within the system, an holistic valuation or fitness measurement of the whole.

The difference between the current market value of the underlying interest and the strike price of an option. In-the-money is a term used when the intrinsic value is positive.

This refers to the difference between an in-the-money call/put and the strike price.

For a call option, the excess of the current market price of the asset or futures contract underlying the option over the strike price of the option; for a put option, the excess of the strike price over the current market price of the asset or futures contract underlying the option.

The difference of the exercise price over the market price of the underlying asset.

The amount by which an option is in-themoney.

The tangible or mathematical value of an option. For example, a call option is said to have intrinsic value when the stock is trading above the exercise price.

The inherent value of a record dependent upon unique factors such as age, circumstances of creation, a signature, or an attached seal. See also Administrative Value, Fiscal Value, Historical Value, Informational Value, and Legal Value (ARMA International).

The inherent worth of a document based upon factors such as age, content, usage, circumstances of creation, signature, or attached seals. (SAA Directory)

The actual value of the precious metals contained within a bullion bar or coin.

The actual value of the metal contained in the coin.

The difference between an in the money option strike price and the current market price of a share of the underlying security.

This is the amount a warrant would be worth if it were to expire today, this is the difference between the Exercise Price and the marker price of the underlying share, divided by the conversion ratio

The amount by which an option is In-the-Money(see above definition).

(a) Referring to an option: The difference between the strike price and the price of the underlying security, for a specified moment or the amount by which an option is in the money. An option, which has an intrinsic value, allows the holder to exercise the option at a profit. An option, which is not in the money, has no intrinsic value. (b) Referring to a company: The present value of company's net cash flows (Net Operating Profit After Tax minus change in Total Capital) expected in the future discounted at the company's Cost of Capital.

(of an option) The difference between the strike price and current price of the underlying commodity.

The in-the-money portion of an option's price. See also In-the-money option

for a call option, it is the greater of the excess of the underlying price over the strike price and zero. For a put option, it is the greater of the excess of the strike price over the underlying price and zero.

the value of an option measured by the difference between the strike price and the market price of the underlying futures contract when the option is "in-the-money."

The intrinsic value of an option is the difference between the actual price of the underlying security and the strike price of the option. The intrinsic value of an option reflects the effective financial advantage that would result from the immediate exercise of that option.

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 above the current price of the underlying futures contract.

The component in an option premium that can be expressed as follows: a value equal to the difference between the strike price and the underlying currency's price level.

This term is used when describing the premium of an option. The intrinsic value of an option is that element of an option's premium that represents the value that the option would have if that were to be exercised immediately. The total value of the option, that is, its premium, is always at least equal to its intrinsic value.

The amount by which an option is in-the-money. Out-of-the-money options have no intrinsic value.

The estimated true value of a company based on analyzing data like current earnings, Price/Earnings (P/E) Ratio and projected future earnings.

The difference between an in-the-money option strike price and the current market price of the underlying asset. The intrinsic value of an out-the money option is always zero.

The amount by which an option is in-the-money. The intrinsic value is the difference between the exercise/strike price and the price of the underlying security.

The amount an option is in the-money, calculated by taking the difference between the strike price and the market price of the underlying futures contract when the option is "in-the-money."

If a call option strike is below the current price of the underlying then the difference is known as the intrinsic value. Therefore all in-the-money options have an intrinsic value and out-of-the-money options will have none, instead an out of the money options premium will consist solely of time value

The intrinsic value of an option is the difference between the exercise/strike price and the current market price of the currency. For in-the-money options, always a positive number or zero, because the option can never be worth less than zero. If the option is out-of-the-money, it has no intrinsic value.

Calculated by subtracting the Option Bid Price from the Current Stock Price (for Call Options). Intrinsic value is the in-the-money portion of an option's premium.

The dollar amount that could be realized if the option were to be immediately exercised. In other words, the amount by which an option is in-the-money. For call options, it is the current S&P futures price minus the strike price if the difference is a positive number. For put options, it is the strike price minus the current price of S&P futures if the difference is a positive number.

The amount by which the option is in the money. For a call, this is the current underlying price minus the exercise price. For a put, this is the exercise price minus the current underlying price. An out of the money has no intrinsic value. An in the money option, has some intrinsic value.

The positive difference between the strike price and the current market price of an option is the intrinsic value of the option. It is measured by the present value of the amount by which it is in the money.

The amount by which an option is 'in-the-money'. Limit Order An order to buy or sell a security at a price specified by the client. The order can be executed only at the specified price or better. It sets the maximum price an individual is willing to pay as a buyer, and the minimum price an individual is willing to accept as a seller. Market Order An order placed to buy or sell a security immediately, at the best possible price.

The amount, if any, by which an option is currently in-the-money. An option that is not in-the-money has no intrinsic value.

The portion of the premium that reflects the positive difference between the strike price of the option and the price of the underlying commodity (futures contract). Intrinsic value exists when the price of the underlying commodity exceeds the strike price of a call or is below the strike price of a put.

The basic value of an option (the difference between the exercise price and the market price) if it is exercised immediately.

For in-the-money call and put options, the difference between the strike price and the underlying contract price

The value of an option if it were to expire immediately with the underlying stock at its current price; the amount by which an option is in-the-money. For call options, this is the difference between the stock price and the striking price, if that difference is a positive number, or zero otherwise. For put options it is the difference between the striking price and the stock price, if that difference is positive, and zero otherwise.

The difference between the strike price and the underlying futures price for an option that is in-the-money.

Historic or other value of an item that means it must be retained and preserved in its original form - the value that the item has beyond the recorded information contained in it.

The amount that the market price of a stock is above the strike price of a call option or below the strike price of a put option o that stock (the in-the-money amount).

current market value of the precious metal in a coin.

The amount of money an option would make by exercising it immediately; the price difference between the strike price and the price of the underlying.... more on Intrinsic value

For a call warrant, the amount that equals to the market value of the underlying security less the strike. For a put warrant, the amount that equals to the strike less the market value of the underlying security. The intrinsic value corresponds to the amount by which a warrant is in-the-money.

The dollar amount of the difference between the exercise price of an option and the current cash value of the underlying security. Intrinsic value and time value are the two components of an option premium, or price.

Actual Value. With a share the intrinsic value is the same as all assets of the fund divided by the number of outstanding funds. An investment fund is required to published intrinsic value of the shares or to provide such information upon request.

The amount by which an option is in-the-money (ITM). Out-of-the-money (OTM) opti...

The difference between the strike price of an option and the market value of the underlying security.

The greater value of zero, or the difference between the price of the underlying instrument and the strike price of the option. Put options have intrinsic value greater than zero when the price of the underlying instrument is below the option's strike price. Call options have intrinsic value greater than zero when the price of the underlying instrument is above the option's strike price.

The part of the option premium attributed to the fact the option is in-the-money.

the value of the precious metal that a coin is made of.

For a call option, this occurs when the level of the market is higher than the strike. Conversely a put option has intrinsic value if the strike is higher than the market level. In both cases the amount of the intrinsic value is calculated by deducting the strikes from the market level.

If the option is exercised and the acquired underlying asset is sold immediately, the profit realized is the intrinsic value of the option. i.e. Intrinsic value of a Call = Asset price - Call strike price Intrinsic value of a Put = Put strike price - Asset price.

Amount by which the price of the underlying share exceeds the exercise price.

The amount by which the price of a warrant or call option exceeds the price at which the warrant or option may be exercised.

Value of Strike versus Current Futures Price (if exercise).

The value of the option in relation to the price of the underlying security. For call options it is the difference between the stock price and striking price, if that difference is a positive number, or zero otherwise. For put options it is the difference between the striking price and the stock price, if that difference is positive, or zero otherwise. Only in-the-money options have intrinsic value.

The amount by which an option is in-the-money. For calls, intrinsic value equals the difference between the underlying futures price and the optionâ€(tm)s strike price. For puts, intrinsic value, the value of the option is strike price minus the value underlying futures price. Intrinsic value is never less than 0.

The relationship of an option's in-the-money strike price to the current futures price. For a put: strike price minus futures price. For a call: futures price minus strike price.

The amount of money that an option is worth if it were exercised.

The amount by which an option is in-the-money. An option which is not in-the-money has no intrinsic value. For calls, intrinsic value equals the difference between the underlying futures price and the option's strike price. For puts, intrinsic value equals the option's strike price minus the underlying futures price. Intrinsic value is never less than zero.

1. The value of a company or an asset based on an underlying perception of the value. 2. For call options, this is the difference between the underlying stock's price and the strike price. For put options, it is the difference between the strike price and the underlying stock's price. In the case of both puts and calls, if the difference between the underlying stock's price and the strike price is negative, the value is given as zero.

The value of an asset justified by its future net cash flows discounted by the required rate of return or as justified by facts, often as distinguished from the asset's current market price and/or its book value.

A valuation determined by applying data inputs to a valuation model. The value is comparable to the prevailing market price.

The actual money value which an object possesses in itself; its value in relation to unsatisfied wants. As applied to securities, it means value as an investment- the basic worth of a corporation, as calculated by its past record, potential earning power, and underlying equities. As applied to a call (put) option is the amount by which the strike price is less (more) than the market price. It is the value of an option if it is exercised immediately.

Commonly, it is the actual value of a security as opposed to its value in the marketplace as determined by Fundamental Analysis. When referring to options, it is the amount by which the option is in the money relative to strike price and the market price.

The actual, true, or inherent value of something that is not based on temporary economic swings.

That portion of a warrant, right or call option's price that represents the amount by which the market price of the underlying security exceeds the price at which the warrant, right or call option may be exercised. The intrinsic value of a put is calculated as the amount by which the underlying security's market value is below the price at which the put option can be exercised.

An appraisal term referring to the value created by a person's personal preferences for a particular type of property.

A measure of the value of an option or a warrant if immediately exercised. 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.

The amount by which the exercise price of an option or warrant is in the money.

A component of the market value of an option.

The value of the metal(s) contained in a numismatic item. The United States issues contained their intrinsic value in metal until 1933 for gold coins and 1964 for silver coins. Modern U.S. coins are termed fiat currency (see Fiat currency).

In finance, intrinsic value refers to the value of a security which is intrinsic to or contained in the security itself.

Intrinsic value in general, is the argument that the value of a product is intrinsic within the product rather than dependent on the buyer's perception.

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how much the metal in a coin is worth.

With regard to securities, it is the basic worth of a corporation, based on a calculation of its past performance and potential earning power.

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