Definition
The immediate exercise value of an in-the-money option.
Why it’s relevant today
Option prices separate current payoff from time-based expectations.
Why it matters
Intrinsic value helps explain what portion of a premium is tangible.
The immediate exercise value of an in-the-money option.
Option prices separate current payoff from time-based expectations.
Intrinsic value helps explain what portion of a premium is tangible.
Discussion
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