In-the-money option

In-the-money option

An option that has intrinsic value. For a call option, the underlying asset price exceeds the exercise price of the option (hence, if the option is immediately exercised, it has value).

In-the-Money

1. A call option with a strike price less than the value of the underlying asset.

2. A put option with a strike price more than the value of the underlying asset.

In both these situations, the option contract has intrinsic value. If an option is deep in the money, it is unlikely that the option will be out-of-the money by the time the option is exercised.
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References in periodicals archive ?
Some of these backdating practices are associated with ISOs that are in-the-money option grants worth a strike price below market value.
Option backdating scandals: how management accountants can help: backdating of employee stock options can have a significant negative effect on a public company. Management accountants are in a position to help their companies address a number of factors that could help prevent a backdating scandal
31) Conceptually, an in-the-money option might still be considered performance-based because its value depends on maintaining the stock price above a certain number.
Options backdating, tax shelters, and corporate culture
If a stock transaction would have created a constructive sale, the in-the-money option will also create a constructive sale.
Constructive sales treatment for appreciated financial positions
The extra $5 million received then goes to the investment banker to settle the in-the-money option that the corporation had previously been short.
Can Synthetic Debt Five Authentic Savings?
50 yesterday, it appears that most of the activity surrounding the in-the-money option consisted of widespread profit-taking.
Schaeffer's Option Blog: Sinovac Biotech Ltd. (SVA) Call Traders Cash In on Vaccine-Related Rally
Open interest for this in-the-money option comes in at 20,312 contracts, making it the site of peak front-month call open interest.
Schaeffer's Option Blog: Call Trading Swells on Advanced Micro Devices (AMD)
In addition, each outstanding in-the-money option to purchase shares of Castelle was converted into the right to receive the excess, if any, of the per share purchase price ($4.
Captaris Completes Acquisition of Castelle
The in-the-money option has seen heavy trading all day, but the bulk of today's volume crossed in two blocks of 10,000 contracts around 9:44 a.
Schaeffer's Daily Market Blog Features: Pfizer, Applied Materials, Oracle, Pilgrim's Pride and Gold Kist
At the time we pulled our numbers, this in-the-money option had seen more than 22,000 contracts trade on an option that, heretofore, had open interest of fewer than 3,700 contracts.
Schaeffer's Midday Options Update Features Aeropostale, Dreamworks Animation, Nortel Networks, Altria Group, and Kraft Foods
50and includes the cash out of CBBC in-the-money options.
Suncrest Bank to Acquire California's CBBC Bancorp in USD 62.5m Deal
The consideration of 50 pence for every Probability stock values all of the issued and to be issued stock capital of Probability (assuming that all rights regarding in-the-money options under the Probability Stock Option Schemes are exercised) at nearly 18.
United Kingdom : GTECH UK approves terms of proposed cash acquisition
This includes the cancellation of in-the-money options with cash.
-Bank of Marin Bancorp to acquire NorCal Community Bancorp

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