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A free-rider problem exists for any good that is not
In The Money
A term describing an option contract that has intrinsic value, indicating it's profitable to exercise it.
Exercise Price
The price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.
Put Option
A financial contract giving the buyer the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
In The Money
A term used in options trading to describe an option with intrinsic value - a call option with the underlying price above the strike price, or a put option with the underlying price below the strike price.
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