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Intrinsic Value of an Option

This value is important to consider when making investment decisions. Understanding the concept of intrinsic value in the world of finance is crucial for making informed investment choices. In simple terms, it refers to the value of an option that is currently in the money or has immediate exercise potential when the underlying asset is evaluated at market price. As a knowledgeable investor, it is essential to carefully evaluate the intrinsic value of an option before making any investment decisions. This will help you make sound and profitable choices in the dynamic world of finance.

Out-of-the-money

An option that would result in a loss upon immediate exercise is known as an out-of-the-money option. Specifically, a Call option is considered out-of-the-money when the cur...

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Options Contracts

This allows investors to speculate on the future price movements of an asset without committing to a purchase. An option contract is a vital financial tool that grants inves...

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In-the-money

An option is considered In-the-money when the buyer is in a profitable position at a specific spot price of the underlying securities. This term is used in reference to both ...

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Basis

In finance, we often refer to basis as the discrepancy between the current price of a security and the price of its corresponding futures contract. This can be thought of as...

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