Intrinsic and Time Value
An option’s price consists of two parts:
Intrinsic Value: The actual profit if exercised now.
Time Value: The extra value based on time left until expiry and volatility expectations.
Hedging and Risk Management
Investors use options to hedge against adverse price movements. For example, holding puts can protect a stock portfolio from market declines—similar to buying insurance.
An option’s price consists of two parts:
Intrinsic Value: The actual profit if exercised now.
Time Value: The extra value based on time left until expiry and volatility expectations.
Hedging and Risk Management
Investors use options to hedge against adverse price movements. For example, holding puts can protect a stock portfolio from market declines—similar to buying insurance.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publicaciones relacionadas
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.