In which of the following situation will a call option will be called “out the money”?
In an option contract, an option will be exercised only when the option holder is in a favorable position with respect to the strike price as per the options contract vis-à-vis the market price of the underlying asset. As such, the option holder calculates his potential profit or loss to him if he exercises the option. This potential profit or loss is referred to as the money-ness of the option. There can be three scenarios:
Note – for calculating the money-ness of option contract the option premium is not considered; however, for the total profit calculation, the option premium will also be taken into account. Money-ness Call Option (i.e. option to Buy) Put Option (i.e. option to Sell) In the Money (i.e. profit and hence option will be exercised) Market Price (or spot price)> Strike Price Market Price (or spot price) < Strike Price At the Money (indifferent) Market price (or Spot Price) = Strike Price Out of the Money (i.e. loss and hence option will not be exercised) Market Price (or spot price) < Strike Price Market Price (or spot price) > Strike Price
Part IV A of the Indian Constitution deals with_________________
The terms legislation has been derived from two Latin words, legis meaning _______ and latum meaning ______
'la principle de legalite' means:
As per section 7 of the Banking Regulation Act the provisions of this section shall not apply to____.
Which of the following is not a punishment within the meaning of Section 53 of the Indian Penal Code?
Which of the following is not defined in the Indian Evidence Act?
In order to apply the doctrine of Res-Judicata, which of the following is “former suit”?
The Information Technology Act, 2000 shall not apply to_________.
Is a written contract compulsory to be made for a lease?
What does Habeas Corpus mean?
