Examlex
An individual who listens to loud music late in the night is creating _____
Out Of The Money
Out of the money describes an option where exercise would result in a negative cash flow. Out-of-the-money options are therefore never exercised.
In The Money
Describes an option whose exercise would produce a positive cash flow. Out of the money describes an option where exercise would result in a negative cash flow.
Intrinsic Value
The perceived or calculated true value of an asset, investment, or company, based on fundamentals, without regard to market value.
Call Option
A financial contract giving the buyer the right, but not the obligation, to buy a specified amount of an underlying asset at a predetermined price within a specified time frame.
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