Derivatives
In the Money
Definition
What is In the Money?
An option with positive intrinsic valueAn estimate of an asset's underlying economic worth based on expected cash flows, assets, or earning power..
Example in practice
How This Looks in Practice
A ₦50-strike call is in the money when the share trades at ₦60.
Keep learning
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.