| An expression used in options and warrants trading which indicates the difference between the exercise price of the option/warrant and current price of the underlying instrument (shares, an index, commodity, etc). As such it shows how much the options or warrants would be worth if exercised immediately. If it is in the money it has intrinsic value. For value investors, intrinsic value has a slightly different meaning. It is an estimate of the true worth of a company based on an analysis of its current and projected future earnings and how that relates to its share price.
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