Out Of The Money |
| An option or warrant with negative intrinsic value. For example, a call option/warrant whose exercise price is higher than the price of its underlying asset has no intrinsic value and is out of the money. The only value that out of the money options/warrants can have is their time value. Put another way, while there is still some time before the expiry of the option or warrant, there is always a chance that the price of the underlying asset will move in favour of the option/warrant holder. |
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