Option moneyness refers to the value of an option if it were exercised right away. Options can be out of the money, at the money, or in the money. We explain these terms here and discuss how forward prices can affect the moneyness of an option.
Option moneyness refers to the value of an option if it were exercised right away. Options can be out of the money, at the money, or in the money. We explain these terms here and discuss how forward prices can affect the moneyness of an option.
