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- 1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by ____ 3, Determine the Intrinsic Value1. The option is currentlyA. In-the-moneyB. At-the-moneyC. Out-the-money 2. Determine the In/At/Out- the money by _____3, Determine the Intrinsic ValueQ. Discuss the factors that affect an option’s price?
- i) Differentiate between “in the money”, “out the money” and “at the money” positions in a put option. Provide the example with the illustration.1. The option is currently A. In-the-moneyB. At-the-moneyC. Out-the-money2. Determine the In/At/Out- the money by _____ 3. Determine the Intrinsic ValueWhat is in-the-money option?
- Question 3: What are the pros and cons of using options traded in the over-the-counter market and in an exchange for hedging? Plz explain itExplain the following terms, In-the money option and At-the-money option.What’s the difference between a financial optionand a real option? What are some specific typesof real options? Do real options just occur, or canthey be “created”?
- D3) Please describe the Compound Option, the advantages and disadvantages of investing in this option versus a Vanilla Option.What is a financial option? What is the single most important characteristic of an option?Compute for the: 1.) Put Option - Total Value 2.) Put Option - Intrinsic Value 3.) Put Option - Extrinsic Value