True value means that there is a profit margin between the execution price of the option contract and the market price of the underlying asset. For the call option, if the market price of the underlying asset is higher than the exercise price, the call option is in a true value state; For a put option, if the market price of the underlying asset is lower than the exercise price, the put option is in a real value state. Real-value options can be exercised in cash and in kind.
Virtual value means that there is no profit space between the execution price of the option contract and the market price of the underlying asset. For the call option, if the market price of the underlying asset is lower than the exercise price, the call option is in a virtual state; For put options, if the market price of the underlying asset is higher than the exercise price, the put option is in a virtual state. You can't make a profit when you exercise a virtual option.
The real value and imaginary value of options are very important to investors because they directly affect the price and investment strategy of options. Real options are expensive because they have intrinsic value; Virtual options are cheaper because they have only time value. Investors can choose appropriate trading strategies according to the real value and virtual value of options, such as buying real options to get higher potential returns, or selling virtual options to get time value gains.