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Options and Futures

At-the-Money Option

A strike price for an option that is either equal or close to the current market price of the underlying futures contract. This type of option is known as an "at-the-money" option. It allows the holder to purchase or sell the underlying asset at a price that is already reflective of the current market value. In finance, this concept is important to understand as it can impact the potential profitability of an option contract.

Related terms

Settlement Price

Understand the meaning and definition of Settlement Price in the context of stock market, trading, and investments.

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Forward (Cash) Contract

Understand the meaning and definition of Forward (Cash) Contract in the context of stock market, trading, and investments.

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Purchase and Sell Statement

Understand the meaning and definition of Purchase and Sell Statement in the context of stock market, trading, and investments.

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Futures Contract

Understand the meaning and definition of Futures Contract in the context of stock market, trading, and investments.

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Series

Understand the meaning and definition of Series in the context of stock market, trading, and investments.

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