What Is the Difference between a ‘Spot Price’ and a ‘Strike Price’ in Options?

The spot price is the current market price at which an asset can be immediately bought or sold. The strike price is the predetermined price at which the underlying asset can be bought (for a call option) or sold (for a put option) when the contract is exercised.

The Oracle feeds the spot price to the smart contract, which then compares it to the fixed strike price to determine if the option is 'in-the-money.'