A call or put option is said to be at-the-money when the strike price is equal to the current price of the underlying asset (i.e. spot price = strike price). An at-the-money option has no intrinsic value but it may have time value.. Example, Suppose you buy a call option of stock ABC at a strike price of $50 and the stock is trading at $50. Then the option is said to be at-the-money option.

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