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).


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.
References in periodicals archive ?
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.
If a stock transaction would have created a constructive sale, the in-the-money option will also create a constructive sale.
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.
50and includes the cash out of CBBC in-the-money options.
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.
This includes the cancellation of in-the-money options with cash.