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The intrinsic value is partially based on the set price of the contract, which is also known as the "strike price". A call option has an intrinsic value if the current price of the currency is higher than the strike price. This would allow the contract holder to buy the currency at less than the current value and then re-sell it for a profit. A put option has an intrinsic value if the current price is less than the strike price of the option.

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