Assertion: call's price | /r/HasProperty | above the strike price
Facets:
value: at expiration
type: TEMPORAL
value: currently
type: TEMPORAL
value: in the money
type: OTHER
value: ideally
type: DEGREE
value: by the time of expiry
type: TEMPORAL
Source sentences:
text: It is only worthwhile for the call buyer to exercise their option (and require the call writer/seller to sell them the stock at the strike price) if the current price of the underlying is above the strike price.
text: means the underlying asset price is below the put strike price ﻿ Out of the money means the underlying price is above the strike price
text: means the underlying price is above the strike price
text: Сonversely, if the asset’s price is above the strike price by the time of expiry, the price differential between the two is the profit that is then multiplied by the number of shares purchased.
text: A call option is in-the-money when the current price of the asset is above the strike price.
text: In this example, if you sell 3 contracts, and the price is above the strike price at expiration (ITM), 300 of your shares will be called away (delivered if the buyer exercises the option), but you will still have 200 shares remaining.
text: If the underlying stock’s price is above the strike price then it makes sense to exercise.
text: The purchaser of a call option pays a premium to the writer for the right to buy the underlying at an agreed upon price in the event that the price of the asset is above the strike price.
text: The put option you’ve bought will not be exercised since the underlying price is above the strike price.
text: Ideally, the price of the stock should be above the strike price -- in the money.
text: And since they are digital, i.e. all or none, if the underlying price is above the strike price, it pays the underlying price.
text: The call seller, or short position, collects a premium from the call buyer, or long position, and in return stands ready to deliver the 100 underlying shares at the strike price if the stock’s price is above the strike price on or before expiration.
text: To this degree, an "at the money" put option is one where the price of the underlying security is equal to the strike price, and (as you may have guessed), an "out of the money" put option is one where the price of the security is currently above the strike price.
text: If underlying price is above the strike price, you exercise the option and you can immediately sell it on the market at the current underlying price.
text: This is because if the price at expiry is above the strike price, the call will be exercised, while if it is below, the put will be exercised, and thus in either case one unit of the asset will be purchased for the strike price, exactly as in a forward contract.