Explain the Concept of “In-the-Money” for Both Call and Put Options.
An option is "in-the-money" (ITM) if exercising it immediately would result in a profit, ignoring the premium paid. A Call Option is ITM when the underlying asset's market price is higher than the strike price.
A Put Option is ITM when the underlying asset's market price is lower than the strike price. Being ITM means the option has intrinsic value.
