Tag

moneyness

1 explainer · 12 quiz questions tagged “moneyness”.

← All articles

Articles

Intermediate · 45/100

Moneyness: In, At and Out of the Money

Moneyness describes where the stock price sits relative to the strike. Learn ITM, ATM and OTM for calls and puts, and how every premium splits into intrinsic value and time value.

intrinsic value moneyness options strike price
1 min read

Quiz questions

  • Difficulty 12/100 Moneyness

    When is a call option "in the money"?

    Read the explainer →
  • Difficulty 15/100 Moneyness

    What does "at the money" (ATM) mean?

    Read the explainer →
  • Difficulty 18/100 Moneyness

    What is an option's intrinsic value?

    Read the explainer →
  • Difficulty 20/100 Moneyness

    The stock trades at $100. Which of these options is in the money?

    Read the explainer →
  • Difficulty 22/100 Moneyness

    The stock is $105. What is the intrinsic value of a $100 call?

    Read the explainer →
  • Difficulty 24/100 Moneyness

    You buy a $50 call for $2. What is the break-even stock price at expiry?

    Read the explainer →
  • Difficulty 25/100 Moneyness

    The stock is $75. Is the $80 call in, at, or out of the money?

    Read the explainer →
  • Difficulty 26/100 Moneyness

    The stock is $42. What is the intrinsic value of a $40 put?

    Read the explainer →
  • Difficulty 28/100 Moneyness

    You buy a $40 put for $1.50. What is the break-even stock price at expiry?

    Read the explainer →
  • Difficulty 29/100 Moneyness

    Nothing about a stock changes for a month. What happens to the price of an out-of-the-money option on it?

    Read the explainer →
  • Difficulty 30/100 Moneyness

    The stock is at $50. Three of these options are out of the money. Which one is NOT?

    Read the explainer →
  • Difficulty 31/100 Moneyness

    You buy a $25 call for $1.20. At expiry the stock is $25.80. What is your result per contract?

    Read the explainer →