What Happens to the Moneyness of a Call and a Put Option If the Underlying Asset’s Price Equals the Strike Price Exactly at Expiration?
If the underlying asset's price is exactly equal to the strike price at expiration, both the call and the put option are considered at-the-money (ATM). At this point, they have zero intrinsic value.
Since there is no time left, their time value is also zero. Therefore, both options expire worthless.
The buyer of either option would lose the entire premium paid, and the seller would keep the premium as their profit.
