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Options FAQs: What is Intrinsic Value?

by The Options Insider | Apr 7, 2014 | Frequently Asked Questions

Intrinsic Value

The premium, that when added to the strike in the case of a call, equals the actual price of the physical underlying security. In the case of a put, it is the premium when subtracted from the strike that equals the underlying security.

The Option Time Premium Curve:?Time vs. Intrinsic Value

Here’s a discussion of intrinsic value:?Breaking Even and Crossing Over

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