Options and Futures

In-the-Money Option

In finance, an option with intrinsic value refers to a call option that has a strike price lower than the current price of the underlying futures contract. Similarly, a put option is considered in-the-money when its strike price is higher than the current price of the underlying contract. This concept is known as intrinsic value and is an important factor to consider when trading options. Understanding the intrinsic value of an option can help investors make informed decisions and potentially increase their profits.

Related terms

Forward (Cash) Contract

Understand the meaning and definition of Forward (Cash) Contract in the context of stock market, trading, and investments.

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Futures Commission Merchant

Understand the meaning and definition of Futures Commission Merchant in the context of stock market, trading, and investments.

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IDEM Membership (CBOT)

Understand the meaning and definition of IDEM Membership (CBOT) in the context of stock market, trading, and investments.

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Capped-Style Option

Understand the meaning and definition of Capped-Style Option in the context of stock market, trading, and investments.

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Price Discovery

Understand the meaning and definition of Price Discovery in the context of stock market, trading, and investments.

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Butterfly Spread

Understand the meaning and definition of Butterfly Spread in the context of stock market, trading, and investments.

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