When Is an Option Out-The-Money

question 37

Essay

When is an option out-the-money?

Understand the principles of option pricing and valuation, including factors affecting option value.

Know the expiration and exercise mechanisms for American-style, European-style, and exotic options.

Understand margin requirements for options, their calculation, and implications for traders.

Differentiate between the trading of options on stocks versus futures contracts.

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Definitions:

Ulrich Beck

A sociologist known for introducing the concept of "risk society," where modernity is marked by the presence of new insecurities and risks.

Benjamin Barber

An American political theorist known for his work on democracy and civic engagement.

Anthony Giddens

A prominent British sociologist known for his theory of structuration and his work on the understanding of modern societies.

Zygmunt Bauman

Zygmunt Bauman was a Polish-British sociologist known for his analyses of globalization, modernity, consumer society, and the liquid modern life.