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Derivatives

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 investment choices. In simple terms, it refers to the value of an option that is currently in the money or has immediate exercise potential when the underlying asset is evaluated at market price. As a knowledgeable investor, it is essential to carefully evaluate the intrinsic value of an option before making any investment decisions. This will help you make sound and profitable choices in the dynamic world of finance.

Intermarket Spread

Intermarket spread refers to the variation in price of a particular contract across different exchanges. This difference can arise due to various factors such as market dema...

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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 a...

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Initial Margin

In the world of finance, the concept of derivatives is a crucial one to understand. Essentially, derivatives are financial instruments that derive their value from underlyin...

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Expiration Date

The option expiration date marks the end of an option's validity and is a crucial factor in the decision-making process for traders. It serves as the deadline for exercising...

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