Intrinsic Value of Call option


I’m reviewing the derivatives section and not very certain amount the terminologies. Intrinsic value of a call option is the present value of the call option or the value of the call option at expiration? I think the formula is MAX (0, S-X). If at expiration (one year later), the stock price is $30 and the strike price is $20 with the discount rate of 10%, the intrinsic value would be $30-$20 = $10 according to the formula. Should I actually discount $10 back a period? I’ve done questions in Schweser, and answers sometimes are discounted back to time t=0. Other times, values are kept at expiration. When should I discount back to time t=0?


The intrinsic value of an option is the value _ if it expired today _; there is no discounting.