Business / Taxes / Out-Of-The-Money: An option is out-of-the-money when the market price of an instrument on which you hold an option is not close to the strike price. Call options — which you buy when you think the price is going up — are out-of-the-money when the market price is below the strike price. Put options — which you buy when you think the price of the underlying instrument is going down — are out-of-the-money when the market price is higher than the strike price. For example, a call option on a stock with a strike price of $50 would be out-of-the-money if the current market price of the stock were $40. And a put option at $50 on the same stock would be out-of-the-money if its market price were $60. When an option expires out-of-the-money, it has no value.
Business / Finance / Out-Of-The-Money Option: A call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market MORE
Business / Finance / Strangle: The simplest form of depreciation, in which an equal expense is recorded in each year of an asset's useful life. For example, if the asset has a purchase price of $1,200,000, a useful life of four yea MORE