What is MTM Realised and Unrealised? How to decide the moneyness of options?

Question

Accepted Answer

MTM Realised and Unrealised are methods of calculating profit or loss on options. Moneyness is determined by the strike price and current market price.

MTM Realised calculates profit or loss on options that have been closed or exercised
MTM Unrealised calculates profit or loss on options that are still open
Moneyness is determined by comparing the strike price to the current market price
In-the-money options have a strike price below the current market price
Out-of-the-money options have a strike price above the current market price
At-the-money options have a strike price equal to the current market price

What is MTM Realised and Unrealised? How to decide the moneyness of options?

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