What Does “At The Money” Mean?
The option is said to be at-the-money, if the market price as well as strike price of the underlying asset happen to be equal.
How Does “At The Money” Applied in Options Market?
An example here is, if ABC security is trading at Rs.100, and the XYZ option is also at Rs.100, it is said to be at-the-money. This is just like a breakeven point situation, not considering the transaction cost.
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