Derivatives
At the Money
Definition
What is At the Money?
An option whose strike priceThe price at which an option holder may buy or sell the underlying asset. is close to the underlying market price.
Example in practice
How This Looks in Practice
A ₦50-strike option is at the money when the share is near ₦50.
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Related Terms
Derivatives
Derivative
A contract whose value depends on an underlying asset, rate, index, or event.
DerivativesUnderlying Asset
The asset, rate, index, or reference on which a derivative's value is based.
DerivativesNotional Amount
The reference amount used to calculate derivative payments, which may exceed the cash initially exchanged.
Derivatives StrategiesCovered Call
A strategy that owns the underlying asset and sells call options against it.