Hence, the value of a European call option is determined by the difference between the current price of the underlying asset and the strike price. If this distance is positive, . if the option is in the money, then the current payoff of the position is positive. In case the strike price is higher than the current stock price, . if the contract is OTM, the value of the call option is still larger than zero, because until maturity, the price difference can become positive. When market participants value option contracts, they use forecasts of the probability of different asset prices for the period.
