Sentences with phrase «market price of an asset»

The actual market price of that asset might end up being significantly lower than the strike price, but the put option has locked in the sales price.

The Efficient Markets Hypothesis in its semi-strong form says that the current market price of an asset incorporates all available information about the security in question.

The models should try to forecast the fair market prices of assets / collateral, off of estimated future lending conditions, so that at the end of the loan, estimates can be made as to whether loans would be refinanced, extended, or default.

The strike price is usually higher than the current market price of the asset when it is first traded but is usually valid for an extended period of time; and some warrants such as MINIs or perpetual warrants have no expiry dates.

All going well, you could end up enjoying benefits in the two trades even if by the end of the trade the market price of the asset was between the striking value of your first and second investments.

On the other hand, when the consideration is for something other than money, the tax base is calculated by the market price of the asset or service.

Numerous traders need a demo account to familiarize with the trading platform, to experiment a few trading strategies, to perceive how prices act in this present reality and to test how their own mental trading theories work while they are under pressure to hit the right choice if the market prices of an asset hit the target or when the time lapses.

Total return accounts for two categories of return: income including interest paid by fixed - income investments, distributions or dividends and capital appreciation, representing the change in the market price of an asset.

At the maturity date, if the strike price is lower than the market price of the asset, I decide to buy the underlying at the strike price because I am supposed to get profit from the difference between the two prices.

In the near - term, or even longer, the market price of an asset can do just about anything.

If the return on assets is satisfactory — the market price of those assets will one day be satisfactory.

So, if he thinks the market price of an asset will drop below the strike price before the contract expires, he would buy a put option.

Arguably the greatest risk to investors today is an underappreciation of how significant a change in bond interest rates will be on the market prices of every asset from shares, to property to collectible licence plates.

A profit - share mechanism reduces token velocity because as the market price of an asset decreases, its yield increases.

For example, if you see a market price of an asset, but as soon as you attempt to trade at that price the liquidity immediately dries up, does the price have any meaning?