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Before we get in to what is ITM, ATM and OTM, it is important to know about intrinsic value. Intrinsic value is the difference between the strike price of the options contract (call option contract or put option contract) and ...
An option is a derivative contract that is bought and sold between two parties. The buyer of the contract has the right but not the obligation to exercise the contract, while the seller of the contract has the obligation to ...