A call option is said to be 'in the money' when:

Question

Quizplus · Accepted Answer

A call option gives the holder the right, but not the obligation, to buy an underlying asset at a specified exercise price on or before a specified expiration date. In the case of a call option, the holder profits when the price of the underlying asset rises above the exercise price. When the price of the share is greater than the exercise price, the call option is "in the money" and the holder can exercise the option to buy the asset at a price lower than the current market price, thus realizing a profit.

A Call Option Is Said to Be 'In the Money