The profit that would result if an option were immediately exercised. It is also the amount that an option is in-the-money. For call options, the intrinsic value is equal to zero or (spot – strike), whichever is greater. For put options, the intrinsic value is equal to zero or (strike – spot), whichever is greater.
See also
Time Value
In-the-Money
Out-of-the-Money
