How Does Moneyness Affect the Premium of a Cryptocurrency Option?

The premium of a cryptocurrency option is the price that the buyer of the option pays to the seller. The premium is affected by a number of factors, including the moneyness of the option.

An in-the-money option will have a higher premium than an out-of-the-money option, because it has a higher probability of being profitable. The premium is also affected by the time to expiration and the implied volatility of the underlying cryptocurrency.