Definitions for "In-the-Money Option"
An option that has intrinsic value. A call option is in-the-money if its strike price is below the current price of the underlying futures contact. A put option is in-the-money if its strike price is above the current price of the underlying futures contract.
A "call" option is in-the-money if the strike price is less than the market price of the underlying security. A "put" option is in-the-money if the strike price is greater than the market price of the underlying security Intrinsic Value The amount by which a market is in-the-money. Out-of-the-money options have no intrinsic value. Calls = underlying -strike price. Puts = strike price - underlying.
An option is described as “in-the-money” when the... Add a comment