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Moniness of options

B

Benjamin

Member
Hi,

Why are options regarded as "in the money" when the spot crosses the strike price and without also factoring in the option premium?

The notes and online tutorials always say e.g. for a call, once the share price exceeds the strike price "we would exercise the option" - but you wouldn't, because you're losing money until the share price exceeds (strike + option premium).
 
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