In-The-Money

Business / Taxes / In-The-Money: An option is in-the-money at any point up to expiration if the exercise price is below the market price of a call option or above the market price of a put option. That means an in-the-money option has value. For example, if you hold an equity call option with a strike price of $50, and the current market price of the stock is $52, the option is in-the-money. As the option holder, you could buy the stock at $50 and either sell it at $52 or add it to your portfolio. Or, if you preferred, you could sell the option, potentially at a profit. In-the-money options are generally among the most actively traded, especially as the expiration date approaches.

Strike Price

Business / Finance / Strike Price: For a stock index option, the index value at which the buyer of the option can buy or sell the underlying stock index. The strike index is converted to a dollar value by multiplying by the option's co MORE

Assignment

Business / Finance / Assignment: The receipt of an exercise notice by an options writer that requires the writer to sell (in the case of a call) or purchase (in the case of a put) the underlying security at the specified strike price MORE

Offset

Business / Agriculture / Offset: Liquidating a purchase of futures contracts through the sale of an equal number of contracts of the same delivery month, or liquidating a short sale of futures through the purchase of an equal number MORE

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