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Exercisable value
A portion of the total value of an option at a given point in time, which corresponds to the positive difference between the exercise price of the option and the spot price of the underlying at that time.
(1) The difference is positive, and the option is in the money at that given point in time when the exercise price is lower than the spot price of the underlying at that time in the case of a call option, or higher than the spot price in the case of a put option.
(2) The total value of the option is composed of its intrinsic value and its time value.
Translations
Synonyms and variations
- Intrinsic value