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SkipE99 Wrote:
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> ok so the 46 in the top example is NOT the current
> price of the stock?? you're saying the stock went
> from $35 and is currently valued at 35+46 = $81,
> making the option be $46 in-the-money?
>
> is it just the amount by which the option is
> in-the-money?
>
> seems like a large jump for an example to go from
> 35 to 81.

Nah, it does happen, believe me! ;-) If it says option is worth 46 that is the amount it's in the money for an American option (as you can strike it straightaway - otherwise there'd be an arb)