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How do you determine whether the currency option is in the money?
Wiki User
∙ 13y ago
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit.
There are two components to an option value, TIME VALUE, and INTRINSIC VALUE.
Time Value + Intrinsic Value = Option Premium.
When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value.
When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
Wiki User
∙ 13y ago
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Importance of foreign exchange rate?
The foreign exchange rate helps determine the value of money. When the exchange rate is high, then the currency is less valuable.
What is the premium on money in a currency exchange?
Agio is the term for the premium on money in a currency exchange.
What is the currency money used in haiti?
The name of the currency used in Haiti is "gourde'
What are the FX option when trading currencies?
When trading in Foreign Exchange, large sums of money can be sold in one currency at an agreed price and time. A different currency can then be bought at an agreed price. Most trading is over the counter but some is through exchanges such as the International Securities Exchange.
What is the exchange that is done with foreign money?
A wide variety of foreign money is exchanged. It really depends on what currency is being used, and how much of that currency is being used, and the value of that particular currency.
Can states make money?
No, only the U.S. government can produce legal tender, whether it is currency or coins.
What does Broker Forex specialize in?
Broker Forex specializes in trading in currency differentials. In particular they speculate on whether a particular currency will rise or fall and hedge money based on this.
What is the meaning of 'currency' when referring to money?
Currency is money
What is a Currency Calculator used for?
A Currency Calculator is used to help convert money from one currency to another. Currency Calculators use the current exchange rate between two different currencies to determine how much money will result from a specific conversion AT THE PRESENT TIME. They can be free or cost a fee. They can be accessed online, in stores, banks, and other locations.
Currency in a sentence?
That answer lacks currency! Currency is another word for money.
What is a synonymsantonymsor homophones that go after currency and money?
Currency: Cash, banknotes, legal tender Money: Currency, cash, funds
What are the Esperanto words for money and currency?
The Esperanto word for money is "mono" and for currency is "valuto."
Can you bring American money to South Africa?
You can bring U.S. currency anywhere in the world, but it depends on the locals as to whether or not they'll accept it. In South Africa, they do not accept U.S. money.
A definition of foreign currency exchange?
Foreign currency exchange is the trade of one country's money with another, whether for profit (what is known as Forex of FX trading) or for business and personal uses (when traveling for example).
Importance of foreign exchange rate?
The foreign exchange rate helps determine the value of money. When the exchange rate is high, then the currency is less valuable.
Is currency and money synnonyms antonyms or homophones?
synonyms antonyms or homphones currency money
What is the premium on money in a currency exchange?
Agio is the term for the premium on money in a currency exchange.
