Define that an option is in-, at-, or out-of-the-money, Financial Management

What is meant by the terms that an option is in-, at-, or out-of-the-money?

Answer:  A call or put option with St > E (E > St) is considered to as trading in-the-money.  If St ≅  E the option is trading at-the-money.  Determine if St < E (E < St) the call (put) option is trading out-of-the-money.

Posted Date: 5/9/2013 5:36:44 AM | Location : United States







Related Discussions:- Define that an option is in-, at-, or out-of-the-money, Assignment Help, Ask Question on Define that an option is in-, at-, or out-of-the-money, Get Answer, Expert's Help, Define that an option is in-, at-, or out-of-the-money Discussions

Write discussion on Define that an option is in-, at-, or out-of-the-money
Your posts are moderated
Related Questions
How does the theory of comparative advantage relate to the currency swap market? Answer:  Name recognition is very important in the international bond market. With no it, even a

Review of career plans: career plans, emerging out of career planning exercise, have long term orientation. A career plan is developed based on assumptions about how the environmen

What is the Ratios based on historic cost accounts Ratios based on historic cost accounts don't give a true picture of trends, due to the effects of inflation and different acc

Let us express the process of calculating approximate percentage price change for a given change in yield and a given duration using the following formula:

discuss the applicability of operating cycle and any other financial knowledge to poultry business in uganda

Objectives and Functions of ASIC The objective of ASIC is to ensure the confident and informed participation of consumers in the financial system. To attain this objective, it


Q. Advantages of Just-in-time inventory management? JIT inventory management methods look for eliminate waste at all stages of the manufacturing process by minimising or elimin

Development of the Market Until 1950s, T-Bills were issued by both the Central and State Governments and from 1950s, it is only the Central Government that is issuing Treasury

What is Inventory turnover The shortcoming of this ratio is that average calculation based on beginning and year-end inventory may not represent actual average in year. Other l