What Is the Intrinsic Value of an In-the-Money Call Option? ▴ Learn

What Is the Intrinsic Value of an In-the-Money Call Option?

The intrinsic value of an in-the-money (ITM) call option is calculated as the current market price of the underlying cryptocurrency minus the option's strike price. This value represents the immediate profit that would be realized if the option were exercised instantly.

If the result of this calculation is zero or negative, the intrinsic value is zero, as the option is not ITM. Intrinsic value cannot be negative.

What Is Meant by an Option Being ‘In-the-Money’ (ITM), ‘At-the-Money’ (ATM), or ‘Out-of-the-Money’ (OTM)?

Define ‘In-the-Money’ (ITM) for Both Call and Put Cryptocurrency Options

How Does the Strike Price Relate to an Option Being “In-the-Money” (ITM)?

What Is the Concept of ‘In the Money’ (ITM) in Options Trading?