Intrinsic Value

This Issue in United States

Concept of Intrinsic Value in Futures Trading

In this context of financial law, the following is a definition of Intrinsic Value: A measure of the value of an option or a warrant if immediately exercised, that is, the extent to which it is in-the-money. 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.

Intrinsic Value

Concept of Intrinsic Value in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The amount that would be realised if an option were immediately exercised.

Resources

See Also

• Derivatives Contract