There Are Two Basic Knives Used in Chip Carving, a Cutting

question 20

True/False

There are two basic knives used in chip carving, a cutting knife and a stab knife.

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Definitions:

At The Money

A situation in options trading where the strike price of an option is equal to the market price of the underlying asset.

Out Of The Money

Describes an options contract that would not yield a profit if exercised at the current market level.

In The Money

Describes an option with an intrinsic value where a call option's strike price is below the market price of the underlying asset or a put option's strike price is above.

Time Value

The additional amount an investor is willing to pay for an option above its intrinsic value, based on the time remaining until its expiration.