At-the-money: Difference between revisions
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{{a|glossary|}}As they once said of New Zealand cricketer Bob Cunis, neither one thing nor the other. Neither in [[in the money|the money]] or [[Out-of-the-money|out of it]]. All square. | {{a|glossary|}}As they once said of New Zealand cricketer [[Bob Cunis]], neither one thing nor the other. Neither in [[in the money|the money]] or [[Out-of-the-money|out of it]]. All square. | ||
An arm’s-length [[swap transaction]] will start out life [[at-the-money]] and, when the last payments have been made, will finish there too, but will usually spend the rest of its time swinging wildly [[in-the-money]] — at which point one is a [[creditor]] — and [[out-of-the-money]] — at which point one is a [[debtor]]. | An arm’s-length [[swap transaction]] will start out life [[at-the-money]] and, when the last payments have been made, will finish there too, but will usually spend the rest of its time swinging wildly [[in-the-money]] — at which point one is a [[creditor]] — and [[out-of-the-money]] — at which point one is a [[debtor]]. | ||
{{moneyness}} | {{moneyness}} | ||
Revision as of 12:23, 6 July 2020
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As they once said of New Zealand cricketer Bob Cunis, neither one thing nor the other. Neither in the money or out of it. All square.
An arm’s-length swap transaction will start out life at-the-money and, when the last payments have been made, will finish there too, but will usually spend the rest of its time swinging wildly in-the-money — at which point one is a creditor — and out-of-the-money — at which point one is a debtor.
See also
- Flawed asset
- The moneyness hokey-cokey: in-the-money, out-of-the-money and at-the-money
- Options