Call Dr. Yoo Suh on phone number (321) 434-8420 for more information and advice or to book an appointment.
By Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.Therefore, market value may be significantly higher or lower than the intrinsic value.y Investopedia AAA |. A: There is a significant difference between intrinsic value and market value. Intrinsic value is an estimate of the actual true value of a company. Market value is the value of a company as reflected by the company's stock price.
The intrinsic value has a one-to-one relationship with the underlying stock price. A call option with a $50 strike price has $1 dollar of intrinsic value when the underlying stock price is at $51, $2 when the underlying stock price is at $52, $3 when the underlying stock price is at $53, and so on. Very predictable.