Options & derivatives
In the money
An option is "in the money" when exercising it would already be profitable at the asset's current price.
An option is "in the money" when exercising it would already be profitable at the asset's current price.
A call is in the money if the price is above the strike; a put, if the price is below. An in-the-money option costs more, because it already has real (intrinsic) value.
A $50-strike call on a $54 stock is in the money by $4.
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