Straddle: related pages
At the money
An option is at-the-money if the strike price equals the exercise price.
Out of the money
An option is out of the money if it has negative intrinsic value.
Intrinsic value
The amount of money an option would make by exercising it immediately; the price difference between the strike price and the price of the underlying.
Put-call parity
A relationship between the price of European call and put options on the same underlying, the underlying security, and the risk free rate.
Option writer
A person who creates an option by selling an option to a buyer.
Copyright Graeme Pietersz © 2005-2019
