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Derivatives

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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Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date. In the world of finance, t...

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Last Trading Day

In finance, the last trading day is the ultimate opportunity for a derivative contract to be either traded or settled before the delivery of the underlying asset or cash set...

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European Options

It allows the holder to buy or sell an underlying asset at a predetermined price on the expiration date. The key difference between a European option and an American option i...

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