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.
Glossar
Call Option
Upside ⎊ Acquiring a Call Option provides leveraged upside participation in the appreciation of a specific cryptocurrency asset.
Intrinsic Value of a Call Option
Definition ⎊ The Intrinsic Value of a Call Option represents the immediate, positive economic benefit a holder would realize if they chose to exercise the contract at the current moment.
Intrinsic Value
Valuation ⎊ This represents the in-the-money amount of an option, calculated as the difference between the spot price and the strike price, if positive, otherwise zero.