Describing a call or put option in which the exercise price is the same (or very nearly the same) as the current market price of the underlying asset.
A call option is a financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a fixed timeframe.
A derivative contract in which one party agrees to pay another the difference between the current value of an underlying asset and the value at the time the contract was made.
In finance, an underlying asset is the security, index, or other financial instrument that the value of a derivative is based on. Understanding the nature of the underlying asset is crucial for evaluating and managing the risk associated with derivatives.
