Examlex
If the cost of groceries goes up by 10 percent this year,the amount of groceries you can buy for $50 decreases by that same 10 percent.This is an example of
Strike Price
The price at which the holder of an option contract can buy (in the case of a call option) or sell (in the case of a put option) the underlying asset.
Pricing Model
A set of criteria or strategies used to determine the selling price of a product or service.
In The Money
Describes an option with intrinsic value, where call options have a strike price below the market price of the underlying, and put options have a strike price above it.
Underlying Stock Price
The current market price of the stock that is the subject of an option or other derivative investment vehicle.
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