In which of the following situation will a call option will be called “out the money”?
In an option contract, an option will be exercised only when the option holder is in a favorable position with respect to the strike price as per the options contract vis-à-vis the market price of the underlying asset. As such, the option holder calculates his potential profit or loss to him if he exercises the option. This potential profit or loss is referred to as the money-ness of the option. There can be three scenarios:
Note – for calculating the money-ness of option contract the option premium is not considered; however, for the total profit calculation, the option premium will also be taken into account. Money-ness Call Option (i.e. option to Buy) Put Option (i.e. option to Sell) In the Money (i.e. profit and hence option will be exercised) Market Price (or spot price)> Strike Price Market Price (or spot price) < Strike Price At the Money (indifferent) Market price (or Spot Price) = Strike Price Out of the Money (i.e. loss and hence option will not be exercised) Market Price (or spot price) < Strike Price Market Price (or spot price) > Strike Price
Which one of the following is a correct equation?
The delivery of goods by one person to another as a security for the payment of a debt is called__________.
___________ is a capital budgeting technique which does not require the computation of the cost of capital for decision making purposes.
What is the rate of TDS to be deducted in payment or credit to a resident contractor/sub-contractor other than an individual or a Hindu Undivided Family?
What is the time limit for filing revised return at present?
An asset is purchased for Rs.50,000 on which depreciation is provided annually according to the straight-line method, the useful life is 10 years and ...
Process of verifying the documentary evidences of transactions are known as___________
What is the significance of GeM Analytics in the Government e-Marketplace?
ICDS IV primarily deals with which aspect of financial reporting.
Mr. A of Delhi supplied goods to Mr. B of Chandigarh (Union-Territory). Which law will govern this transaction
