what is the intrinsic value of a european call option
Intrinsic value of options is the value of its underlying stock that is built into the price of the option. In fact, options traders buy stock options for the sake of those options gaining intrinsic value (Long Call or Long Put options trading strategy).ntrinsic value and extrinsic value are the two components that makes up the price of a stock option. Intrinsic value, or sometimes known as Fundamental Value, is the value that remains in an option when all of its extrinsic value has diminished due to Time Decay.