In the money

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Revision as of 06:53, 19 June 2014 by imported>Doug Williamson (Link with Intrinsic value page.)
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(ITM).

1.

An option is in the money for the holder when immediate exercise of the option would result in a gain for the option holder.


2.

A derivative such as a swap is in the money when, for example, the swap rate is favourable compared with the current market rate, so that the net present value of the derivative is positive.


See also