|
Definition of Moneyness
1. Noun. (context: derivative securities) The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price. ¹
2. Noun. (context: economics banking) The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity. ¹
¹ Source: wiktionary.com