What is Intrinsic Value?

Intrinsic value refers to the actual value of an option. In an In the Money option, the intrinsic value is the difference between Strike price & Spot Price.

Call option
Spot Price - Strike Price = Intrinsic value

Put option
Strike Price - Spot Price = Intrinsic value

In an Out of the Money or At the Money option, the intrinsic value is considered to be zero.