In-the-money option


An option that has intrinsic value. For a call option, the underlying asset price exceeds the exercise price of the option (hence, if the option is immediately exercised, it has value).

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day


The length of time until a loan is due. For example, a loan is taken out with a two year tenor. After one year passes, the tenor of the loan is one year.

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