Intrinsic Value Options Example. One of the easiest ways to illustrate the concept of intrinsic value is through options. Say a call option’s strike price is $15 and the market price is $50; ...

Intrinsic Value = Strike Price – Market Price. Let's take as an example a stock that is priced at $60 and a call option has a strike price of $50, the intrinsic value is $10 ($60 – $50).

Intrinsic Value = Options Premium – Time Value . Once you know the time value of the contract, you can use the payable or receivable premium amount to find out how much the contract is worth at ...