The intrinsic value of a call option is the difference between the current price of the underlying asset and the strike price. In the case of a put option, the intrinsic value corresponds to the difference between the strike price and the current price of the underlying asset. In principle, the intrinsic value thus indicates the return that would result if the option were exercised immediately. Since there is no obligation to exercise options, the intrinsic value cannot be negative. The option value is always composed of the time value and the intrinsic value.