Chapter 03 · Section 3.1

In-, At- and Out-of-the-Money Options

To identify whether an option is IN-, AT- or OUT-OF-THE-MONEY, one need only compare the EXERCISE PRICE of the option to the MARKET PRICE of the underlying asset.

On the following screens you will see the graphs showing the relation-ship between the "position" of the option (in-, at- or out-of-the money)and its intrinsic value.