How to tell if a trade is in or out of the money?
As a newbie, I'm a bit puzzled how to tell if a trade is in or out of the money, when looking at a graph. For instance, I'm looking at USD/JPY graph and see the price line has been mainly below but twice a little bit above the yellow horizontal line. But the line goes up and down according to the latest price. So how do I tell at any given time if it is in or out of the money if say a PUT option had been exercised?
Some help would really be appreciated.