in the money
Where the strike or exercise price of a call option is below the current market price of the underlying security. Similarly, a put option is in the money if the exercise price is above the current market price of the underlying security.
+ in the money
USA
Reflecting a balance owing (though not necessarily due) from one party to another. Commonly used in a variety of contexts. In swaps and derivatives, a trade is, or a group of trades are, described as being in the money to the party that has accrued a positive net balance.
For example, parties to an ISDA agreement do not typically settle their trades on a daily or even weekly or monthly basis. Rather, the parties run debit and credit balances with one another (usually backed by the daily or weekly exchange of collateral). When the aggregate value of all trade positions under a particular trade or group of trades is positive for a party, that party is said to be in the money on that trade or group of trades.
This term is also commonly used in the context of options.
In a situation where the exercise or strike price for an option is:
• In the case of a call option, below the market price of the asset or commodity underlying the option, which would permit the party exercising the call option to buy the underlying asset or commodity at a lower price and sell it at the (higher) market price for a profit, such option is in the money to that party.
• In the case of a put option, above the market price of the asset or commodity underlying the option, which would permit the party exercising the put option to sell the underlying asset or commodity at a higher price and buy it at the (lower) market price for a profit, such option is in the money to that party.
Related terms

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • The Money Maze — Format Game show Created by Don Lipp Ron Greenberg Directed by Arthur Forrest Presented by Nick Clooney Narr …   Wikipedia

  • The Money Programme — The logo as of 2008 Genre Finance Business Affairs Presented by Max Flint Libby Potter Opening theme …   Wikipedia

  • The Money Machine — was a show on ZDTV, and later TechTV, hosted by Carmine Gallo. The show offered investment advice to viewers, predominantly on how to begin investing via the internet. When TechLive debuted in 2001, The Money Machine was discontinued in favor of… …   Wikipedia

  • The Money Lenders — 1981 is a book by British journalist Anthony Sampson that looks at the history of banking from the Renaissance to a meeting of the International Monetary Fund in Washington DC in 1980, with an emphasis on the interaction of finance with… …   Wikipedia

  • The Money or the Gun — was an Australian comedy / talk show on the ABC network in 1989 1990, with occasional specials until 1994. It was written by Andrew Denton, Simon Dodd, Bruce Griffiths, and George Dodd, directed by Martin Coombes and produced by Mark… …   Wikipedia

  • The Money Pit — For the location known as The Money Pit , see Oak Island. The Money Pit Theatrical release poster Directed by Richard Benjamin …   Wikipedia

  • in the money — See: IN THE CHIPS …   Dictionary of American idioms

  • in the money — See: IN THE CHIPS …   Dictionary of American idioms

  • on the money — phrasal exactly right or accurate < her intuition was right on the money > …   New Collegiate Dictionary

  • We're Only in It for the Money — Studio album by The Mothers of Invention Released …   Wikipedia

  • In It for the Money — Infobox Album | Name = In It For The Money Type = Album Artist = Supergrass Released = 21 April, 1997 Recorded = Sawmills Studio Autumn 1996 Genre = Britpop, Alternative rock Length = 43:03 Label = Parlophone Producer = Supergrass John Cornfield… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”