A description of a derivative relating its strike price to the price of its underlying asset. Moneyness describes the intrinsic value of an option in its current state.

Moneyness tells option holders whether exercising will lead to a profit. There are many forms of moneyness, including in,out or at the money. Moneyness looks at the value of an option if you were to exercise it right away. A loss would signify the option is out of the money, while a gain would mean it's in the money. At the money means that you will break even upon exercising the option.

Investment dictionary. . 2012.

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  • Moneyness — ist eine Kennzahl aus der Theorie der Optionsscheine, die quasi die „Lage“ (den aktuellen Börsenkurs) eines Optionsscheines in Bezug zum Geld (Basiskurs) beschreibt: Im Sprachgebrauch unterscheidet man die drei Bereiche Moneyness > 1:… …   Deutsch Wikipedia

  • Moneyness — In the money redirects here; for the poker term, see In the money (poker). In finance, moneyness is a measure of the degree to which a derivative is likely to have positive monetary value at its expiration, in the risk neutral measure. It can be… …   Wikipedia

  • moneyness — noun a) The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price. As an options expiration date approaches only its moneyness has value …   Wiktionary

  • moneyness — mon·ey·ness …   English syllables

  • moneyness — noun ( es) : the quality or state of being readily convertible to cash : liquidity …   Useful english dictionary

  • Strike price — In options, the strike price, or exercise price, is a key variable in a derivatives contract between two parties. Where the contract requires delivery of the underlying instrument, the trade will be at the strike price, regardless of the spot… …   Wikipedia

  • Swaption — A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. Although options can be traded on a variety of swaps, the term swaption typically refers to options on interest rate swaps.There are two …   Wikipedia

  • Volatility smile — In finance, the volatility smile is a long observed pattern in which at the money options tend to have lower implied volatilities than in or out of the money options. The pattern displays different characteristics for different markets and… …   Wikipedia

  • Call option — This article is about financial options. For call options in general, see Option (law). A call option, often simply labeled a call , is a financial contract between two parties, the buyer and the seller of this type of option.[1] The buyer of the …   Wikipedia

  • Option style — In finance, the style or family of an option is a general term denoting the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) …   Wikipedia

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