Ok I have in my notes that: for a call to be at the money, intrisic V >= 0 for a put to be at the money, intrisic V > 0 for some reasons that I don’t remember, I circled this difference in red !! (I guess I picked wrong answer to a Q) Can someone refresh me as I don’t see the point … shouldn’t it simply be >= for both ?? thanks
For either a call or a put to be ATM the strike = underlier price => intrinsic value is 0. But everything before the ‘=>’ is much more important.
sure Joey what is before the “=>” is just the core of what we have to learn I was just wondering why I had this comment on my notes … :s