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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 only unknown is the implied volatility, which contributes to the extrinsic value of an option. Fundamentally Option price has two components, 1) Intrinsic value = Stock Price - Strike Price for CALL as long as Stock Price >= Strike Price. So Intrinsic value is >= 0. 2) Extrinsic value = Time value.