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In the money - Financial definition

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Translations:      FR  dans la monnaie (loc.)     ES  dentro del dinero (loc.)     DE  im Geld (loc.) 

  Concise definition of the term in the money

An option is said to be «in the money» when its intrinsic value is positive. For a call option, this means that its strike is lower than the price of the underlying asset. A put option is said to be «in the money» when its strike is higher than the price of the underlying asset.

 Additional information related to this definition

Definitions of related terms

At the money  •  Option

Formulas related to this definition

Payoff at expiry for the purchase of a call option  •  Payoff at expiry for the purchase of a put option  •  Payoff at expiry for the sale of a call option  •  Payoff at expiry for the sale of a put option  •  Value of a call option at expiry  •  Value of a put option at expiry

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