option value
71Extrinsic Value — The difference between an option s market price and its intrinsic value. In theory, options should not trade above their intrinsic value due to the time value associated with option pricing. Extrinsic value is also the portion of an item s worth… …
72Intrinsic Value — 1. The actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. This value may or may not be the same as the current market… …
73Fair Market Value Purchase Option — The right but not the obligation to buy a leased asset at the end of the lease term for a price that represents the item s then current worth. The Fair Market Value Purchase Option does not provide the purchase price in advance, but as long as… …
74Bond option — In finance, a bond option is an OTC traded financial instrument that facilitates an option to buy or sell a particular bond at a certain date for a particular price. It is similar to a stock option with the difference that the underlying asset is …
75Add To Cash Value Option — A common benefit option on life insurance policies wherein the policy owner allows the dividends from policy to be used for the purposes of accumulating cash values. On death, the beneficiaries receive an increased death benefit from the cash… …
76Trinomial Option Pricing Model — An option pricing model incorporating three possible values that an underlying asset can have in one time period. The three possible values the underlying asset can have in a time period may be greater than, the same as, or less than the current… …
77time value — The market value of an option over and above its intrinsic value, representing the value of the possibility that the price of the underlying will shift significantly in a favourable direction before the option expires. Clearly, this value… …
78Stock option return — calculations provide investors an easy metric for comparing stock option positions. For example, for two stock option positions which appear identical, the potential stock option return may be useful for determining which position has the highest …
79Contingent value rights — A Contingent Value Rights (CVR) is a type of option that can be issued by the buyer of a company to the sellers. It specifies an event, which, if triggered, lets the sellers acquire more shares in the target company. The New York Times claims[1]… …
80Deferred Option Month — The latter month or months of an option or futures contract. For example, when considering a three month option at the time of purchase months two and three could be thought of as deferred. In the second month of ownership, the third month could… …
