16 Options Flashcards by Fernando De Roda | Brainscape

Q

Options fundamentals

A

The right to buy or sell a specific quantity of shares at a specific price or before a specific date

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Premium

A

Premium = Intrinsic Value + Time Value

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

Intrinsic Value

A

Intrinsic Value = Stock Price - Exercise Price

Never can be negative

How well did you know this?

1

Not at all

2

3

4

5

Perfectly