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General TradingI
Intrinsic Value
The actual, inherent worth of an asset based on fundamental analysis, independent of its current market price. In options trading, intrinsic value is the difference between the underlying asset's price and the option's strike price when the option is in the money.
Example
“For example, if a call option has a strike price of $100 and the stock trades at $115, the option's intrinsic value is $15 — any premium above that represents time value.”