AT-THE-MONEY

There are three states of "moneyness" for options: In-the-money options, at-the-money options and out-of-the-money options. In-the-money options have intrinsic value. That is, if the options are exercised, the underlying asset is bought or sold at a favorable price. Out-of-the-money options have strike prices that are not favorable to exercise. At-the-money may or may not be exercised. At-the-money options have strike prices that are equal to the underlying asset prices.

Primary location: Frankfort United States