What Are the Four Common Runout Tolerance Zone Shapes and on What

question 3

Essay

What are the four common runout tolerance zone shapes and on what two factors do they depend?

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Definitions:

Intrinsic Value

The actual, inherent worth of an asset or investment, determined through fundamental analysis without regard to market value.

Strike Price

The predetermined price at which the holder of an option has the right to buy (in the case of a call option) or sell (in the case of a put option) the underlying security or commodity.

Put Option

This is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Strike Price

The set price at which an option contract can be bought (call option) or sold (put option) when it is exercised.