What Is the Difference between an “In-the-Money” (ITM) Call Option and a Put Option?

A Call option is ITM when the underlying asset's price is above the strike price, meaning the holder can buy below market. A Put option is ITM when the underlying asset's price is below the strike price, allowing the holder to sell above market.

Both ITM options possess intrinsic value, which is the amount immediately gained upon exercise. This value makes them more expensive than OTM options.