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Out of the money |
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Out 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.Similar MatchesNear moneyNear moneyAssets that are easily convertible into cash, such as money market accounts and bank deposits. Money purchase scheme (defined contributions scheme)Money purchase scheme (defined contributions scheme)A pension scheme in which the benefits will be dependent on contributions to, and growth of, the fund and the fund manager's costs. Money marketMoney marketThe money market, in macroeconomics and international finance, refers to the equilibration of demand for a country's domestic money to its money supply. Both refer to the quantity of money that people in the country hold (a stock), not to the quantity that people both in and out of the country choose to acquire during a period in the exchange market, mostly for the purpose of then using it to buy something else. Money market demand account (MMDA)Money market demand account (MMDA)An account that pays interest based on short-term interest rates. In the money optionIn the money optionAn option that has value. Further SuggestionsSpeculative demand (for money)money market New money Money order Base money Money Money Market Mutual Out of the money option Good money money transmission Money base at the money Money market yield Money income High powered money Money overhang Pre-Money Valuation Money rate of return Call money rate in the money Money market notes Seed money Hot money Seed money Time value of money |
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