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Meant of terminology in- at- out-of-the-money

What is meant through the terminology that an option is in-, at-, or out-of-the-money?

A call (put) alternative with St > E (E > St) is referred to as trading in-the-money. If St ≅ E the option is trading at-the-money. If St < E (E < St) the call (put) option is trading out-of-the-money.

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