At the money: related pages
Option value
The difference between the intrinsic value of an option and its actual value is called the option value.
Intrinsic value
The amount of money an option would make by exercising it immediately; the price difference between the strike price and the price of the underlying.
Option
The right to buy or sell an asset at a pre-arranged price.
Call option
An option that gives the holder the right to buy a security.
Put option
An option that gives its holder the right to sell the underlying security at a pre-determined price.
Out of the money
An option is out of the money if it has negative intrinsic value.
In the money
A term used to indicate than an to indicate that the intrinsic value of an option is positive.
Copyright Graeme Pietersz © 2005-2019
