Description
Classify call or put spot moneyness and calculate nonnegative intrinsic value.
Financial market terms depend on quote conventions, contract multipliers, rate units, horizons and signed positions. A price gap, intrinsic value or linear sensitivity is a limited scenario term rather than an executable price or complete valuation. Variance, volatility, fractional rates and basis points are different quantities.
Classify call or put spot moneyness and calculate nonnegative intrinsic value.
When to use this tool
Use Option Moneyness Convention Label when checking the stated supplied market, valuation or exposure convention.
How to use the tool and how it works
- Enter spot, strike, callOption. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read intrinsicValue, state. Use the output convention below.
Require spot/strike>=0. For a call use spot-strike, for a put strike-spot; positive/zero/negative gives in/at/out-of-money and intrinsicValue=max(0,difference).1
Positive call intrinsic value requires spot above strike; for a put, spot below strike. This helper uses exact equality for at-the-money and omits premium and time value.2
| Input field | Meaning and units | Accepted input |
|---|---|---|
| spot | Spot | Required. Finite number; minimum 0. |
| strike | Strike | Required. Finite number; minimum 0. |
| callOption | Call Option | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| intrinsicValue | Nonnegative spot-minus-strike for calls or strike-minus-spot for puts, per supplied quantity basis. | Required. Finite number. |
| state | State | Required. Text; maximum UTF-16 length 8192. |
{
"input": {
"spot": 105,
"strike": 100,
"callOption": true
},
"output": {
"intrinsicValue": 5,
"state": "in-the-money"
}
}Limitations and assumptions
- This ignores premium, multiplier, exercise style and time value; it does not price an option, calculate profit or recommend a trade.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use verified contract/market data and a complete suitable valuation and risk model with qualified financial advice for actual investment or trading decisions.
References
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