To put it simply, the intrinsic value is equal to the exercise price of the option minus the corresponding current price of the futures, that is, the profit earned when the option is immediately exercised. It can also be negative, and the calculation of time value is more complicated. The formula is different for different types of options. The value of an option is equal to the intrinsic value plus the time value.

For example: for a call option, the current price of the physical commodity is 10 yuan, the exercise price is 8 yuan, the option price is 5 yuan, then the intrinsic value is 10-8=2 and the time value is 5-2=3