How Does the Strike Price Relate to a Call Option's ITM Status? ⎊ Path

How Does the Strike Price Relate to a Call Option’s ITM Status?

For a call option to be In-The-Money (ITM), the current price of the underlying asset must be higher than the option's strike price. The lower the strike price relative to the current price, the deeper ITM the call option is.

This difference determines the intrinsic value.

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Glossar

Strike Price

Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.