In share trading:
In share trading, intrinsic value refers to the 'true' value of a company as perceived by a trader or investor. Traders will have different opinions on what constitutes intrinsic value for a stock, with some emphasizing strong fundamentals and others looking at its growth potential.
Shares have intrinsic value, which measures their inherent value, and extrinsic value, which measures how much their value is derived from external factors.
In options trading:
The intrinsic value of an option is determined by the difference between the price of the underlying asset and the strike price of the option. In call options, intrinsic value is calculated by subtracting the strike price from the price of the underlying asset, while in put options, it's calculated by subtracting the strike price from the price of the underlying asset.