In the money

An option is said to be in the money (often written"in-the-money") if its intrinsic value is positive.

A call option is in-the-money if current price of the underlying asset is greater than the exercise price, vice versa for a put option.

Option value declines as an option goes more deeply into the money, and the intrinsic value becomes comparatively more important.

Copyright Graeme Pietersz © 2005-2020