At-the-money

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As they once said of New Zealand cricketer Bob Cunis, neither one thing nor the other. Neither in the money or out of it. All square.

An arm’s-length swap transaction will start out life at-the-money and, when the last payments have been made, will finish there too, but will usually spend the rest of its time swinging wildly in-the-money — at which point one is a creditor — and out-of-the-money — at which point one is a debtor.

See also

• Flawed asset
• The moneyness hokey-cokey: in-the-money, out-of-the-money and at-the-money
• Options