What Is “In-the-Money” for a Call Option, and What Does It Imply for Its Intrinsic Value?
A call option is "in-the-money" (ITM) when the underlying asset's current market price is higher than the option's strike price. Being ITM means the option has "intrinsic value." The intrinsic value is the immediate profit that could be realized if the option were exercised immediately, calculated as the underlying price minus the strike price.