Sentences with phrase «of the underlying asset goes»

If the price of the underlying asset goes to zero, the profit would be the strike price less the premiums paid for the options.

Not exact matches

It's no wonder, the CDO market went «no bid» at the height of the Global Financial Crisis - investors had no idea about the worth of the underlying assets sitting in the CDO's, let alone the CDO's squared or cubed!

Some of these funds provide far more liquidity to the customer than the underlying assets in the fund, and it is reasonable to worry about what would happen if these funds went into large liquidation.

«You had wealth creation that could not be tied to the underlying economy,» he added, «and the benefits were very skewed: they went to the assets of the rich.

If Blackrock goes bankrupt the underlying assets of a iShare unit are protected.

To pick an option that has the potential to turn a profit, an investor needs to assess the value of an option according to her belief of whether the price of the underlying asset will go up or down.

Put options go up in value when the underlying asset declines below the exercise price of the option.

This means the net asset value of the fund is going up at the same pace as the value of the dividends plus the capital gains of the underlying stocks.

It can go up or down depending on changes in the underlying asset, time to expiration and levels of volatility.

The quandary is this: when given the option of steady income but with no ownership control of the underlying assets or a variable income that could go way up or could go way down but still be within the control of the owner, most people pick the steady income.

For example, if the price of a barrel of oil goes from $ 50 to $ 55, the value of a binary option based on that underlying asset would also tend to go up.

a «capital gain» on your original investment if the value of the scheme's underlying investment assets has gone up when they are sold.

When you buy a CFD over a share, index or commodity (known as «going long»), you hope that the value of that underlying asset will rise, so you can sell the CFD for a profit.

You are essentially betting on whether the value of an underlying asset is going to rise or fall in the future compared to what it was when the contract was taken out (or executed).

Besides, credit vol is probably exploding so even though the value of the underlying asset (the corp bond) has gone up in value, any put option will also go up in value.

Some of these funds provide far more liquidity to the customer than the underlying assets in the fund, and it is reasonable to worry about what would happen if these funds went into large liquidation.

We're willing to bet that the number of participants that will enter based on the former altered situation is far smaller than the number that will enter based on the latter (i.e., the number of longs is going to dramatically outweigh the number of shorts) and, in turn, the net impact of a bitcoin futures market on the price of the underlying asset will be very much bullish.