# Terminology

* OTM - out of the money - an option is out of the money if it has no intrinsic value, i.e. for a call option if the strike is above the forward price and for a put option if the strike is below the forward price.
* ITM - in the money - an option is in the money if it has intrinsic value, i.e. for a call option if the strike is below the forward price and for a put option if the strike is above the forward price.
* ATM - at the money - an option is at the money if it has zero intrinsic value, i.e. for a call option if the strike is equal to the forward price and for a put option if the strike is equal to the forward price.
