Once spot price is greater than strike pride, then does the increase in rate of profit increase drastically?
Ex -call option
spot price at 10am = 93
Strike price = 95
Spot pride @ 11am = 95
Spot price @ 12pm = 97
Increase in spot price btwn 10am - 11am = 2rs
Increase in spot price btwn 11 - 12pm = 2rs
However, note that @ 11am, spot price was > strike price
Assuming all factors that effect premium, except spot price remain the same, then would the increase in premium btwn 10am - 11am be the same as increase in premium btwn 11am-12pm?
Or due to fact that spot price > strike price, will a increase in the underlying after spot price > strike price, cause a more exponential increase in the premium, for the same amount Of increase in underlying ?