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At the money |
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At the moneyA situation where the exercise price of a call/put option or a warrant is equal to the current market price of the underlying instrument.Similar MatchesMoney Market MutualMoney Market MutualFunds which invest in the "Money Market," a variety of interest bearing securities such as treasury bills and bank certificates of deposit. None is invested directly into real property or real property securities. Out of the moneyOut of the moneyAn option or warrant with negative intrinsic value.a call option/warrant whose exercise price is higher than the price of its underlying asset has no intrinsic value and is out of the money. e.g. an option to buy a share at 80p when it is trading at 72p.a put option whose exercise price is lower than the price of its underlying asset has no intrinsic value and is out of the money. e.g. an option to sell a share at 72p when it is trading at 80p.The only value that out of the money options/warrants can have is their time value. Put another way, while there is still some time before the expiry of the option or warrant, there is always a chance that the price of the underlying asset will move in favour of the option/warrant holder. Using the examples above, the holder of the put option might be saved if the price of the share rises to 90p, and the holder of the put option might be saved if the price of the share drops to 60p. Time value declines the nearer the option gets to expiry. Seed moneySeed moneyThe first contribution by a venture capitalist toward the financing of a new business, often using a loan or purchase of convertible bonds or preferred stock. See: Mezzanine level and second round. Fun moneyFun moneyMoney that can be used to invest in risky investments with high potential return. Pre-Money ValuationPre-Money ValuationPre-Money Valuation refers to the value of the company before an outside investment is made. Thus if a company has a pre-money valuation of $5 million, and a Venture Capitalist invests $10 million, then the Venture Capital firm will own 66% of the business after the investment ($10M / $15M = 66%) Further SuggestionsMoney marketmoney supply On the money Money market security Money supply Easy money Money supply Money market demand account (MMDA) Purchase money mortgage H Hard Money Mortgage money market Money market hedge in the money Time value of money Money Flow Index money purchase scheme (defined contributions scheme) Call money rate Money order Precautionary demand (for money) Money overhang Money rate of return Fiat money Money market notes money transmission Smart money |
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