Hellow guys, Welcome to my website, and you are watching Intrinsic value and Time Value of Financial Options. and this vIdeo is uploaded by Patrick Boyle at 2019-02-02T09:18:46-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Intrinsic value and Time Value of Financial Options |
| Video Uploader | Video From Patrick Boyle |
| Upload Date | This Video Uploaded At 02-02-2019 17:18:46 |
| Video Discription | What is Intrinsic value and Time Value of Financial Options?, In The Money, At The Money, Out Of The Money These classes are all based on the book Trading and Pricing Financial Derivatives, available on Amazon at this link. https://amzn.to/2WIoAL0 Check out our website http://www.onfinance.org/ Follow Patrick on twitter here: https://twitter.com/PatrickEBoyle The price of an option is made up of a combination of intrinsic value and time value. The intrinsic value of an option is the value of exercising the option right now. If the price of the underlying stock is above a call option strike price, the option has a positive monetary value, and is referred to as being in-the-money. If the underlying stock is priced cheaper than the call option's strike price, the call option is referred to as being out-of-the-money. If an option is out-of-the-money at expiration, its holder simply allows the option to expire worthless. This is because a rational investor would choose to buy the underlying stock at market rather than exercise an out-of-the-money call option to buy the same stock at a higher-than-market price. For the same reasons, a put option is in-the-money if it allows the purchase of the underlying at a market price below the strike price of the put option. A put option is out-of-the-money if the underlying's spot price is higher than the strike price. The time value of an option is the premium a rational investor would pay over its current exercise value (intrinsic value), based on the probability it will increase in value before expiry. |
| Category | Education |
| Tags | finance | trading | trading and pricing financial derivatives | patrick boyle | on finance | cfa exam | level 1 | level 2 | level 3 | kings college london | business school | queen mary university of london | Intrinsic value | time value | options | call option | put option | in the money | at the money | out of the money | financial options | options trading | finance terminology | Intrinsic value and Time Value of Options | Intrinsic value and Time Value of Financial Options |
