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How would a free market be characterized?
Intrinsic Value
The lower bound of an option’s value, or what the option would be worth if it were about to expire.
Out Of The Money
Refers to an option that would not result in a profit if exercised immediately because its strike price is less (for a call) or more (for a put) than the market price of the underlying asset.
Underlying Stock Price
refers to the current market price of the stock that is the subject of an option or other derivative contract.
Option
A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price prior to or on a specified date.
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