Intrinsic value

The intrinsic value of an option corresponds to the difference between the current market price and the option?s exercise price, insofar as this represents an advantage for the buyer. The intrinsic value is always greater than, or equal to, zero.

Literatur:

Bloss, Michael; Ernst, Dietmar; Häcker, Joachim: Derivatives, 283 Seiten, 2008
[Dieser Titel bei Oldenbourg]