Business Glossary

Financial analysis: valuation determined by applying data inputs to a valuation theory or model. The resulting value is comparable to the prevailing market price.
Options trading: difference between the exercise price or strike price of an option and the market value of the underlying security. For example, if the strike price is $53 on a call option to purchase a stock with a market price of $55, the option has an intrinsic value of $2. Or, in the case of a put option, if the strike price was $55 and the market price of the underlying stock was $53, the intrinsic value of the option would also be $2. Options at the money or out of the money have no intrinsic value.

net benefit to the holder of an option contract from exercising the option immediately. It is the difference between the underlying price and the option's exercise price. An option generally sells for at least its intrinsic value.

1. value of tangible material, regardless of its use; for instance, the value of silver used in a coin.
2. valuation determined by applying data inputs to a valuation theory or model. The resulting value is then compared to the prevailing market price.

the inherent value of tangible property; contrast intangible value .

Example: Silver, gold, works of art, and land are said to have intrinsic value just because they are desirable to possess.