Because... economics.
The fair market value of a specific item or asset is determined by considering factors such as the item's condition, demand, comparable sales, and other market conditions. This value represents the price that a willing buyer and seller would agree upon in a fair and open market transaction.
The spot price is the current price at which a commodity or asset can be bought or sold for immediate delivery, while the market price is the price at which a commodity or asset is currently trading in the market.
A futures contract is an agreement to buy or sell an asset at a set price on a future date. It allows investors to speculate on the price movement of the asset. Traders can profit if the asset's price moves in their favor, but they can also incur losses if the price moves against them.
The strike price for options is determined based on factors such as the current market price of the underlying asset, the volatility of the asset, and the time until the option expires. Traders and investors analyze these factors to choose a strike price that they believe will be profitable if the option is exercised.
Because... economics.
The fair market value of a specific item or asset is determined by considering factors such as the item's condition, demand, comparable sales, and other market conditions. This value represents the price that a willing buyer and seller would agree upon in a fair and open market transaction.
The spot price is the current price at which a commodity or asset can be bought or sold for immediate delivery, while the market price is the price at which a commodity or asset is currently trading in the market.
A futures contract is an agreement to buy or sell an asset at a set price on a future date. It allows investors to speculate on the price movement of the asset. Traders can profit if the asset's price moves in their favor, but they can also incur losses if the price moves against them.
In general, financial statements show the book value of an asset, not the market value. The few instances where the financial statements will show market valuations are as follows: * When derivatives are carried for hedge purposes, they are periodically marked-to-market * When an investment appears to materially have lost value (when comparing to similar instruments in the market or, for illiquid markets, when operating cash flows from an investment go down markedly), conservatism requires the asset value to be moved to the "market" or lower price
The strike price for options is determined based on factors such as the current market price of the underlying asset, the volatility of the asset, and the time until the option expires. Traders and investors analyze these factors to choose a strike price that they believe will be profitable if the option is exercised.
The term "current price" typically refers to the most recent market price at which an asset, stock, commodity, or currency is trading. This price can fluctuate frequently due to supply and demand dynamics, market sentiment, and economic factors. For the exact current price of a specific asset, it's best to refer to a financial news website or trading platform.
the market or market forces
estimating the price with the season
price,market risk, intrest rist...
Options that are "at the money" have a strike price that is equal to the current market price of the underlying asset, while options that are "in the money" have a strike price that is below the current market price of the underlying asset.
The par value of an asset is the price that was paid for it or the stated price, without consideration of markets pressures.For example, the par value of a US Treasury Bond set at $100,000 and paying 5% interest has a par value of $100,000. The market value may be higher or lower depending on financial market conditions.