What Is the Term for the Price Difference between the Underlying and the Strike?
The term for the price difference between the underlying asset's current price and the option's strike price is called the "moneyness" or sometimes the "amount in-the-money" or "amount out-of-the-money." This difference is key to determining intrinsic value.
Glossar
Moneyness
Concept ⎊ Moneyness describes the intrinsic value relationship between an option's strike price and the current market price of the underlying asset, categorizing options as in-the-money, at-the-money, or out-of-the-money.
Time to Expiration
Decay ⎊ Time to Expiration, within cryptocurrency options and financial derivatives, represents the remaining lifespan of a contract before its termination and potential exercise or assignment.
Price Difference
Disparity ⎊ Price difference, within cryptocurrency and derivatives markets, represents the quantifiable variation between expected and realized values of an asset or contract, influencing trading decisions and risk assessments.
Strike Price
Reference ⎊ The Strike Price is the predetermined reference level set at the contract's inception against which the underlying crypto asset's spot price is compared at expiration or exercise.