What does In The Money (ITM) options mean?

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• What does assignment mean in options?

  Is a situation where the seller of the option will have to sell the underlying asset at the strike price, in case of call options, and buy the underlying asset at the strike price, in case of put options. However, in India, all options contracts are ...

• What is In The Money (ITM) Put Option?

  A put option is said to be ITM when the underlying security’s current market price is lesser than the strike price of the contract.

• What is In The Money (ITM) Call Option?

  A call option is said to be ITM when the underlying security’s current market price is greater than the strike price of the contract.

• What does Premium mean in options?

  Premium is the downpayment that the buyer is required to make to the seller for entering into the options contract.

• What is Out of the Money (OTM) options?

  An option is said to be out of the money if upon exercising it, the option buyer gets a negative cash flow.