The value of an option that is entirely attributed to the performance of its underlying with respect to its strike price. For a call, it is the greater of the excess of the underlying price over the strike price and zero. For a put, it is the greater of the excess of the strike price over the underlying price and zero.

Generally, the intrinsic value of an option refers to the amount by which the option is in the money. This value is the portion of an option value that can be realized if the option is exercised today.

Basically, the intrinsic value is its minimum value. At-the-money options and out-of-the-money options have no intrinsic value.