In the money: Difference between revisions
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imported>Doug Williamson m (Spacing 27/8/13) |
imported>Doug Williamson m (Link with Intrinsic value page.) |
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* [[At the money]] | * [[At the money]] | ||
* [[Out of the money]] | * [[Out of the money]] | ||
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Revision as of 06:53, 19 June 2014
(ITM).
1.
An option is in the money for the holder when immediate exercise of the option would result in a gain for the option holder.
2.
A derivative such as a swap is in the money when, for example, the swap rate is favourable compared with the current market rate, so that the net present value of the derivative is positive.
