Does Intrinsic Value Change with Time to Expiration?
No, the intrinsic value of an option is solely determined by the relationship between the underlying asset's current price and the option's strike price. It is an immediate value.
Time to expiration is a factor in calculating the time value (extrinsic value) of an option, but it does not directly affect the intrinsic value component.
Glossar
Intrinsic Value Change
Derivation ⎊ The intrinsic component of an option's premium is mathematically derived as the greater of zero or the difference between the underlying asset price and the option's strike price.
Intrinsic Value of an Option
Valuation ⎊ Intrinsic value of an option, within cryptocurrency derivatives, represents the immediate profit obtainable through exercising the option given the underlying asset’s current market price.
Intrinsic Value
Valuation ⎊ This represents the in-the-money amount of an option, calculated as the difference between the spot price and the strike price, if positive, otherwise zero.