Assertion: call's option | /r/HasProperty | worth
Facets:
value: with 1.00 of intrinsic value
type: OTHER
value: in the previous example
type: OTHER
value: at the expiration date
type: TEMPORAL
Source sentences:
text: The option is worth $3 and the trader has made a profit of $2.50.
text: But you would do so only if the stock price had risen high enough for the option to be in the money—a term that implies an option is worth exercising because the stock price is above the option’s strike price.
text: If the price of the stock finishes above $65, the option expires in the money and is worth $100.
text: If, however, Citibank stock is trading at $40.50 on November 10, the option is worth a hefty $500.
text: (Each option contract is for 100 shares of stock, so an option quoted at $3 costs you $300 and a $1 share price gain is worth $100.)
text: Being in the money does not necessarily mean an option is profitable, but it means that an option may be worth exercising.
text: The above graphs have looked at what option will be worth at the expiration date only.
text: This theoretical line graphs what the option is worth today and is calculated from a theoretical pricing model, such as Black and Scholes or Binomial Model.
text: This example was calculated when the option has 30 days until expiration and is worth $1.20.
text: So, if your ABC stock trades flat at $60 for the next few months, the option would lose $3.50 and be worth $15.
text: In the previous example, if the price of Wal-Mart is $51 on Dec. 1, the option is worth $100, because the holder can make $100 by purchasing 100 shares at $50 each and selling them at $51 in the open market.
text: If Wal-Mart climbs to $52, the same option is worth $200.
text: If the price of the stock, or any asset that the option is linked to, is equal to or falls below the strike price of the call option, the option is worth $0.
text: means the option is worth approximately $6.
text: The option is worth approximately $6 because there are other factors that affect the worth of an option aside from the price of the underlying stock.
text: But you would do so only if the stock price had risen high enough for the option to be in the money—a term that implies an option is worth exercising because the stock price is above the option’s strike price.
text: The option would now be worth $1.30 with $1.00 of intrinsic value and $0.30 of extrinsic value left.
text: Where an American and a European option are otherwise identical (having the same strike price, etc.), the American option will be worth at least as much as the European (which it entails).