The amount by which an options contract is in the money. A 60cts/gal call option would have 2cts/gal of intrinsic value if the underlying futures price were 62cts/gal.
The amount by which an options contract is in the money. A 60cts/gal call option would have 2cts/gal of intrinsic value if the underlying futures price were 62cts/gal.