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?
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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