Decoding the Intrinsic Value of Options

What is the Intrinsic Value?

The intrinsic value represents the built-in value of an option. It's computed as the difference between the underlying asset's current market price and the option's strike price. Notably, only In-The-Money options possess intrinsic value.

For instance,  if a stock is trading at ₹105 and you have a call option with a strike price of ₹100, the intrinsic value is ₹5.

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