Out-of-the-money: Difference between revisions
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[[Moneyness]] of a crappy kind. | [[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]]. | ||
{{moneyness}} | {{moneyness}} | ||
Revision as of 13:40, 25 February 2019
Moneyness of a crappy kind. Your option has some time value but no — well, negative[1] — intrinsic value.
See also
- Flawed asset
- The moneyness hokey-cokey: in-the-money, out-of-the-money and at-the-money
- Options
- ↑ 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?