How Does Spoofing Affect the Calculation of an Option’s Intrinsic Value?

Spoofing can temporarily affect the calculation of an option's intrinsic value by artificially manipulating the spot price of the underlying asset. An option's intrinsic value is the profit realized if the option were exercised immediately, which is the difference between the strike price and the current spot price.

If a spoofer temporarily inflates the spot price, they artificially increase the intrinsic value of a call option (or decrease a put option's value). This is a fleeting effect, but it can be used to mislead traders or influence automated systems that rely on the spot price.