What Does 'In the Money' (ITM) Mean for a Call Option? ▴ Learn

What Does ‘In the Money’ (ITM) Mean for a Call Option?

A Call Option is 'In The Money' (ITM) when the current market price of the underlying asset is higher than the option's strike price. This means the option has intrinsic value, as the holder could immediately exercise the right to buy the asset for less than its current market price.

The greater the difference between the market price and the strike price, the deeper ITM the option is.

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