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.
Glossar
Call Option
Entitlement ⎊ The core of a call option within cryptocurrency derivatives represents a contractual right, but not an obligation, to purchase a specified digital asset at a predetermined price, known as the strike price, on or before a specific expiration date.
ITM Call Option
Premium ⎊ An ITM Call Option, within cryptocurrency derivatives, signifies a contract where the strike price is below the current market price of the underlying asset, resulting in an intrinsic value component alongside the time value premium.