The value of derivatives depends on the movement in the prices of thei

1.	The value of derivatives depends on the movement in the prices of their
Answer» Answer: Options prices, known as PREMIUMS, are composed of the sum of its intrinsic and TIME value. Intrinsic value is the price DIFFERENCE between the current STOCK price and the strike price. An option's time value or EXTRINSIC value of an option is the amount of premium above its intrinsic value.

The value of derivatives depends on the movement in the prices of their

Answer»

Answer:

Options prices, known as PREMIUMS, are composed of the sum of its intrinsic and TIME value. Intrinsic value is the price DIFFERENCE between the current STOCK price and the strike price. An option's time value or EXTRINSIC value of an option is the amount of premium above its intrinsic value.

Discussion

No Comment Found

Related InterviewSolutions

DIOshowsdalaThe followingcarsnumberacarutimanufactured byfaedarzeashelp ofTata kotona2016-17Reprecentpie Ciagamseduchincass (2)shout naps on cos whomaenti15, 75, oroTalaluctos7,25,oooHyundai5, 50,000
Write names of some important index number.
What do you mean by explicit cost? Are the following included in it?1) Payment of wages to employees of the firm.2) Wages for entrepreneurs own labour.3) Depreciation Cost.4) Rent of entrepreneurs own building.5) Payment of electricity bill.Don't Spam❌
What are the techniques for measuring correction ?
What is data represented in tabular presentation?what are parts of a table?
If we increase the retention rate, than the price of the share will increase or decrease?
Oston 14 of 30In the assembly line balancing, cycle time (the ratio of available production time to scheduled production) is the
Why does each country need a representative on the World Stage? Why do countries need to collaborate and help each other? What do you think are the benefits of doing so?
America is called the "Melting Pot". Why do you think we have earned that nickname? What are the benefits of diversity within our country?
. For the circuit shown in Figure below, calculate the following:(Marks 12)(a) Total resistance across the source(b) Total current from the source(c) Current through 910 Ωthe resistor (d) Voltage from A to point B

The value of derivatives depends on the movement in the prices of their​

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment

The value of derivatives depends on the movement in the prices of their