Call Option vs Extrinsic Value

A financial contract granting the buyer the right, but not the obligation, to purchase an underlying cryptocurrency asset at a predetermined strike price on or before expiry; buyer pays premium upfront; profit occurs when spot price exceeds strike plus premium.

The portion of an option's market price above its intrinsic value; also called time value; reflects the time remaining until expiry and the implied volatility of the underlying; declines to zero at expiration regardless of the underlying price.