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Intrinsic value wo money hota hai jo apko milega jab aap apne option contract ke right ko excercise karte ho. Intrinsic value ek non-negative number hoti hai.
Call option ke case main, Intrinsic value = spot price - strike price
For example: spot price = 2000 strike price = 1960 then
Intrinsic value = 2000-1960 = 40
Put option ke case main, Intrinsic value = strike price -spot price
For example: spot price = 2000 strike price = 2040 then
Intrinsic value = 2040-2000 = 40

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