ISDA and In the money: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Add links.) |
||
| Line 1: | Line 1: | ||
(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. | 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 == | == See also == | ||
* [[ | * [[At the money]] | ||
* [[ | * [[Derivative instrument]] | ||
* [[ | * [[Exercise]] | ||
* [[ | * [[Intrinsic value]] | ||
* [[ | * [[Net present value]] (NPV) | ||
* [[ | * [[Out of the money]] | ||
* [[ | * [[Strike price]] | ||
* [[ | * [[Swap]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
Latest revision as of 11:41, 14 June 2023
(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.
