Wednesday 14 October 2009

Option Pricing Part 2

The intrinsic value for Put option is opposite to Call option. If the share is trading at a lower price than the strike price of a Put option, the option is said to be ITM and has intrinsic value. As the put option taker has the right to sell the share at the higher price than the current market price. The option is said to be OTM if the market price is higher than the strike price.

Article by
Trading Room
www.tradingforreal.blogspot.com

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