Out-of-the-money: Difference between revisions

Latest revision as of 06:46, 27 September 2019

The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™

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Moneyness of a crappy kind: when you're in the hole.^[1] When time value and intrinsic value are the same.

↑ Or, of an option, when it is worthless: when exercising it would cost you money.

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-[[Moneyness]] of a crappy kind. Your [[option]] has some [[time value]] but no — well, ''negative''<ref>If [[time value]] is always positive,  then for an option to be [[out-of-the-money]] its [[intrinsic value]] must have a higher negative value, right?</ref> — [[intrinsic value]].
+{{g}}[[Moneyness]] of a crappy kind: when you're in the hole.<ref>Or, of an [[option]], when it is worthless: when exercising it would cost you money.</ref> When [[time value]] and [[intrinsic value]] are the same.
 {{moneyness}}
+{{ref}}