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Options and Futures

Out-of-the-Money Option

An option that holds no inherent value, meaning its strike price is higher than the current price of the futures contract or its strike price is lower than the current futures price. This type of option is known as "out of the money" and does not hold any profit potential at the current market conditions. It is important to understand the concept of intrinsic value when trading options, as it can greatly impact your investment decisions.
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