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  • Computing Payoff

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    Biswajit Sarma
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    This document discusses options pricing and intrinsic value. It notes that long calls have positive intrinsic value when the underlying asset price is above the strike price, while long puts have positive intrinsic value when the underlying asset is below the strike price. Short calls and puts receive intrinsic value, while the other party pays for the right obtained.

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    This document discusses options pricing and intrinsic value. It notes that long calls have positive intrinsic value when the underlying asset price is above the strike price, while long puts have positive intrinsic value when the underlying asset is below the strike price. Short calls and puts receive intrinsic value, while the other party pays for the right obtained.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    8 views1 page

    Computing Payoff

    Uploaded by

    Biswajit Sarma
    This document discusses options pricing and intrinsic value. It notes that long calls have positive intrinsic value when the underlying asset price is above the strike price, while long puts have positive intrinsic value when the underlying asset is below the strike price. Short calls and puts receive intrinsic value, while the other party pays for the right obtained.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    ConpuTIN PAT OFFF

    Lonn CALL Lon n PUT

    tV

    OP - of

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