In-the-Money Amount Law and Legal Definition
According to 17 CFR 190.01 [Title 17 -- Commodity and Securities Exchanges; Chapter I – Commodity Futures Trading Commission; Part 190 – Bankruptcy], in-the-money amount means:
“(1) With respect to a call option, the amount by which the value of the physical commodity or the contract for sale of a commodity for future delivery which is the subject of the option exceeds the strike price of the option; and
(2) With respect to a put option, the amount by which the value of the physical commodity or the contract for sale of a commodity for future delivery which is the subject of the option is exceeded by the strike price of the option.”
