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
Letter of Credit (LOC) A popular bank instrument begins that a bank has granted the holder an amount of credit equal to the face amount of the L/C. A bank guarantees payment of

Embedded Options  is a provision in the indenture that gives the issuer and/or the bondholder an option to take action against the other party.

The Option-Adjusted Spread (OAS) is a measure of the yield spread (expressed in basis points) which can be used to convert differences between the values an

Factors Affecting cost of capital are elements in the business environment that cause a company cost of capital to be high and low. Figure below illustrative the various primary fa

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk

Just as any other financial market, money market also involves transfer of funds in exchange for financial assets. Because of the nature of the money market, the

applicability of an operating cycle in vegetable growing in uganda

Q. Compute the dividend policy and the value of the firm? Rate of Return: (i) 15% (ii) 10% (iii)8% Cost of Capital (Ke) = 10% Earning per share (E) = Rs. 10 C

discuss the applicability of operating cycle in poultry industry[consider broilers]

explain the concept of working capital.what are the factors which influence the working capital?