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Derivatives

Extrinsic Value

The intrinsic value is the inherent value of an option determined by its underlying asset's current price. This means that the extrinsic value is influenced by factors such as time until expiration, volatility, and interest rates.

Understanding the concept of extrinsic value is crucial for investors in the realm of finance. It refers to the additional value that an option holds beyond its intrinsic price, which is based on the underlying asset's current market price. In simpler terms, it is the premium that investors are willing to pay for the potential future profits of the option. However, this value is not set in stone and is subject to various external factors such as time, volatility, and interest rates.

In the world of finance, the Contract Month refers to the specific month in which futures contracts are settled through either making or accepting delivery. This is also com...

Delivery Points

Futures exchanges have specific locations where commodities are delivered upon the expiration of a contract. These locations are carefully selected and approved by the exchan...

Intrinsic Value of an Option

This value is important to consider when making investment decisions. Understanding the concept of intrinsic value in the world of finance is crucial for making informed inv...

Long Hedge (Futures)

A long hedge refers to a strategy where an investor takes a long position on a futures contract. This is commonly utilized by hedgers who plan to purchase an asset in the fu...

Exercise Settlement Amount

Understanding the concept of a stock option can be a bit tricky, so let's break it down. The strike price refers to the predetermined price at which an option can be bought ...

Exposure Margin

As we continue our exploration of the fascinating world of finance, let's delve deeper into the concept of exposure margin in the F&O segment. This margin serves as an addit...

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Mutual Funds

All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m

Insurance

All terms and concepts related to insurance, which is a financial arrangement that provides protecti

Bank Deposits

All terms and concepts related to the placement of money in a bank account, including savings accoun

Fixed Income Instruments

All terms related to investments like bonds or treasury bills that provide regular, fixed payments,

Financial Terms

A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used

Options and Futures

All terminologies and concepts related to financial derivatives, including options and futures contr

Property

The "Property" category in finance encompasses all aspects related to real estate and tangible asset

Taxes

All terminology and concepts related to various tax types, tax laws, and taxation principles.

Currency

All terms related to the system of money in general use in a particular country, representing a medi

Gold

All terms and concepts related to the precious metal gold, including its price, trading, investment,

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