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Introduction to Option Valuation 1. Moneyness ; does the option give positive payoffs? a. with spot price In the money for call holders, when the underlying price is higher than the strike price. At the money for call holders, when the underlying price is lower then the strike price Our of the money the underlying price is equal to the strike price b. with forward price in-the-money-forward for ..

Topic 1: Option Basics Option Terminology Option is the RIGHT, not the obligation for future transation. Option Moneyness @ the expiration date(European option) / the exercise date (American Option) Spot price > strike price in-the-money(돈이 된다) Exercise Spot price = Strike price at-the-money(똔똔) Indifferent Spot price < Strike price out-of-the-money(돈이 안된다) Do not exercise * Strike price is irre..