At The Money (ATM) and Near The Money The term "near the money" is sometimes used to describe an option that is within 50 cents of being ATM. For example, assume an investor purchases a call option with a strike price of $50.50 and the underlying stock price is trading at $50. In ...
straddleAhead of the 23rd June UK referendum on "Brexit", this note provides a technique for estimating the Forward (at referendum date) At The Money Forwarddoi:10.2139/ssrn.2808168Youmbi, Didier Kouokapsocial science electronic publishing
When the underlying stock trades at $40, the strike price is $40, a 95 day call option is priced at $5 and a 95 day put option is priced at $5 (both with an exercise price of $40). Assume that you buy a straddle. Dete...