Money Of Option
Call Option :
- In the money, spot price is greater than strike price which mean cash flow is positive.
- At the Money,Spot price is equal to the strike price which mean cash flow is zero.
- out of the Money, Strike price is greater than the spot price which mean cash flow is negative.
Put Option
- In the money, strike price is greater than spot price which mean cash flow is positive.
- At the Money ,Spot price is equal to the strike price which mean cash flow is zero.
- out of the Money, spot price is greater than the strike price which mean cash flow is negative.
