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In the Money




(ITM) If you were to exercise an option and it would generate a profit at the time, it is known to be in-the-money.

A put option with a strike price higher than the underlying futures price or a call option with a strike price lower than the underlying futures price.


Additional Comments:

A call option is inthe-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.

Related Terms:

Out of the Money
Refers to an options contract that has no intrinsic value; for instance, a call option whose ...

Intrinsic Value
This is a measure of any real value to the option. The amount by which an ...

At-The-Money
(ATM): When the strike price of an option is the same as the current price of ...





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