考点:the character of call option 关键词:out-of-the-money 解题思路:看涨期权是指持权人有权利以约定的价格购入一项资产,即锁定最高成本。只有标的物的市价低了,就没必要行权了,我们可以从市场买入,成本更低 既然看涨期权已经“亏本”,则说明已经不值得行权,而且约定价格超过了标的物的市价 统计:共计40人答过...
"Out of the money" (OTM) is an expression used to describe an option contract that only contains extrinsic value. These options will have adeltaof less than 0.50. An OTM call option will have astrike pricethat is higher than the market price of the underlying asset. Alternatively, an OTM...
Example of an "Out of the Money CALL Option": If the price of YHOO stock is at $37.50, then all of the call options with strike prices at $38 and above are out of the money. Why are they out of the money? They are out of the money because those options don't have any intrins...
If a call option is “out-of-the-money,” A. It is not worth exercising. B. The value of the underlying asset is less than the exercise price. C. The option no longer exists. D. It is not worth exercising, and the value of the underlying asset is less than the exercise price...
In both these situations, the option contract has no intrinsic value. If an option is deep out of the money, it is unlikely that the option will be in-the money by the expiration date. If possible, out-of-the-money options are sold; if not, they expire worthless and the option ...
ITM call options – lower strikes ITM put options – higher strikes How this relates to option prices Out of the money options At the money options Summary Option moneyness Moneyness is a strange sounding term, but it is sometimes used for describing the amount of intrinsic value an option has...
Out of the money (OTM) option is an option that has zero intrinsic value and the holder of such an option is better off letting the option expire worthless.An out of money call option has exercise price higher than the price of the underlying asset. The holder of a call option is ...
1.你认为股票不会马上上升, 而且你希望先收到部分现金,也就是call option premium;2.为了防止call option的持有人立即行权, 通常是发行out-of-the-money的call option3.Long一个stock, short一个call option4.即使股票价格低于最初的价格, 则还有收到的call option的premium可以breakeven ,所以Breakeven price=S-...
What Happens When A Call Option Expires Out Of The Money ( OTM )? exercise This is also the reason why you can lose all your money in option trading. If you put all your money into buying the "cheap" out of the money options and the underlying stock fails to exceed it's strike pri...