At-the-money: Difference between revisions
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{{ | {{def|At-the-money||adv|[[File:Bob Cunis 1967.jpg|450px|center|[[Bob Cunis: [[on the money]], as it were.]]}}Of a financial instrument, in the [[cunisian]] state: neither one thing nor the other; neither [[in the money|in]] nor [[Out-of-the-money|out of the money]]. 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 23:40, 12 December 2020
{{def|At-the-money||adv|[[File:Bob Cunis 1967.jpg|450px|center|[[Bob Cunis: on the money, as it were.]]}}Of a financial instrument, in the cunisian state: neither one thing nor the other; neither in nor out of the money. 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