Examlex
As a business student, do you think it is important that you learn a second language? Why or why not?
Out-of-the-money
Describes an option that would not make money if it were exercised immediately because its strike price is not favorable compared to the current market price of the underlying asset.
Intrinsic Value
The perceived or calculated true value of an asset, investment, or company based on fundamental analysis rather than current market price.
Equilibrium
A state in which market supply and demand balance each other, resulting in stable prices and no tendency for change.
Call
An options contract that gives the investor the right, but not the obligation, to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period.
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