How Do You Calculate the Intrinsic Value of a Call Option?

The intrinsic value of a call option is the maximum of zero or the difference between the current underlying asset price and the option's strike price. If the asset price is higher than the strike price, the option is "in-the-money" and has intrinsic value.

If the asset price is lower, the option is "out-of-the-money" and its intrinsic value is zero. This calculation represents the immediate profit if the option were exercised.

For crypto options, the underlying asset is typically a coin like Bitcoin or Ethereum.