Explain the Term “In-the-Money” (ITM) for a Call Option.
A call option is "in-the-money" (ITM) when the current market price of the underlying asset is greater than the option's strike price. This state means the option has a positive intrinsic value.
The holder could immediately exercise the option to buy the asset below the market price, resulting in a profit. The deeper ITM an option is, the higher its intrinsic value.