Options and FuturesForward (Cash) Contract Futures Commission Merchant IDEM Membership (CBOT) Capped-Style Option Price Discovery Butterfly Spread
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
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