How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate
to if an option has "Intrinsic Value." In the Money, does NOT mean
in profit.
There are two components to an option value, TIME VALUE, and
INTRINSIC VALUE.
Time Value + Intrinsic Value=Option Premium.
When the market price is above the option strike price of a CALL
option, that option is considered "In the Money" i.e. having
intrinsic value.
When the market price is below the option strike price of a PUT
option, that option is considered "In the Money" i.e. having
intrinsic value.
Related Q&A：
Which tools are option？Well, that really depends on what you're trying to do! For example, if you're into woodworking, tools like saws, chisels, and drills could be options. Oh, and don't forget about sanders and planes! But if you're into electronics, then soldering irons, multimeters, and wire strippers might be your go？to options. Ya know? It all varies based on the specific task or project you have in mind. So, it's kind of hard to give a definite list without knowing more details.
