What Does It Mean for an Option Contract to Be "In-the-Money" On-Chain? ▴ Learn

What Does It Mean for an Option Contract to Be “In-the-Money” On-Chain?

An option contract is "in-the-money" (ITM) on-chain when the current, oracle-reported price of the underlying crypto asset is favorable relative to the contract's strike price. For a call option, ITM means the market price is above the strike price.

For a put option, ITM means the market price is below the strike price. The smart contract's code checks this condition to determine if the holder can profitably exercise the option.

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