Medi Assist Healthcare IPO

Explore
Open Demat Account Login
Finance Wiki
Trending Categories
A
B
C
D
E
F
G
H
I
J
K
L
M
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
#

Options and Futures

Premium (options)

Let's discuss the two key components that make up an options price: intrinsic value and time value. The premium, often referred to as time value, is a crucial factor in determining the overall price of an option. For instance, in an in the money call option with a strike of 65 and an underlying security of 67, the option price would be 3, comprising of 2 points of intrinsic value and 1 point of premium. On the other hand, an out of the money call with a strike of 65 and underlying security at 63 would have an option price of 1-1/2, with the entire amount being attributed to the premium as there is no intrinsic value. This understanding of the components of an options price is essential in making informed investment decisions.
Explore other categories
Trading Terms encompass terminology and phrases commonly used in financial markets, including terms
Learn More
All terms and concepts related to insurance, which is a financial arrangement that provides protecti
Learn More
All terms and concepts related to the precious metal gold, including its price, trading, investment,
Learn More
All terms and concepts related to mutual funds, which are investment vehicles that pool funds from m
Learn More
The "Property" category in finance encompasses all aspects related to real estate and tangible asset
Learn More
A comprehensive resource containing definitions and explanations of terms, concepts, and jargon used
Learn More
All terms and concepts related to the placement of money in a bank account, including savings accoun
Learn More
All terms and concepts related to stocks, also known as equities, which represent ownership shares i
Learn More
All terms and concepts related to the process of saving and investing to ensure financial security a
Learn More
All terms and concepts related to technical analysis in finance, which involves using historical pri
Learn More
Enjoy Zero Brokerage On Stock Investments
Send App Link