The lecture Options Terminologies by Edu Pristine is from the course ARCHIV Financial Instruments. It contains the following chapters:
5 Stars |
|
5 |
4 Stars |
|
0 |
3 Stars |
|
0 |
2 Stars |
|
0 |
1 Star |
|
0 |
... the seller to acquire the right to buy or sell. Expiration Dates: The date on which the option expires is known as Expiration Date. On Expiration date, either the option is exercised or it expires worthless ...
... If the option is out of the money then the intrinsic value is zero. An option is said to have intrinsic value if the option is in the money. An option’s value can be interpreted as being made up of two parts, intrinsic value and time value. Time value is then the difference between the option’s value and its intrinsic value. Although a vanilla option’s intrinsic value can never be negative, ...
... option can be exercised only on the expiration date ...