# In Range (IR)

### Term Definitionâ€‹

A Panoption is considered in range (IR) when the underlying asset's market price is between the Panoption's lower and upper price range.

### Example (Panoptic)â€‹

Suppose an investor purchases a Panoptic Call Option on ETH with the following details:

- Underlying asset: Ether (ETH)
- Contract size: 0.5 ETH
- Strike price (K): 2,500 USDC
- Expiration date: None
- Width: r = 1.1 (10%)
- Numeraire (quote asset): USDC

In this case, the investor has the right to buy 0.5 ETH at a price of 2,500 USDC/ETH at any time. The Panoption's range can be computed from its strike price (K) and width (r) as follows:

- $Lower Price Range = \frac{K}{r} = \frac{2,500}{1.1} = 2,272 \text{ USDC}$
- $Upper Price Range = K \cdot r = 2,500 \cdot 1.1 = 2,750 \text{ USDC}$

While the market price of ETH remains in between the lower and upper price range (2,272 â€” 2,750 USDC) the Panoption is considered "in range". If the market price of ETH rises above the upper price range (2,750 USDC), the Panoption becomes out of range. If the market price of ETH falls below the lower price range (2,272 USDC), the Panoption also becomes out of range.