Examlex
If it costs Con Ed approximately $20 per additional ton of air pollution abated, but it costs PG&E only $10 per additional ton of air pollution abated and a marketable pollution permit trades for $14 per ton,
Underlying Stock
The basic security that one has the right to buy or sell under the terms of an option contract or other derivative agreement.
Value
The financial, tangible, or estimated value of a property, product, or service.
Intrinsic Value
The actual, inherent worth of an asset, independent of its market value, often calculated using fundamental analysis.
Call
An option contract that gives the holder the right, but not the obligation, to buy a security at a specified price within a specified time period.
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