At the Money

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At the Money

An option contract with a strike price exactly equal to the price of the underlying asset. In this situation, the option contract has no intrinsic value. However, it can easily develop an intrinsic value if the option becomes in-the-money. At-the-money options are extremely volatile because they can become in-the-money or out-of-the-money quickly.
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5 times the one-month at-the-money option price, respectively.
1994), we compute the implied volatility for an at-the-money option by linearly interpolating between the implied volatilities of the in-the-money and out-of-money options.
exercise price of an at-the-money option should presumably be based on
Instead, Bates (1996) approximates the relation between the BS IV and expected variance until expiry with a Taylor series expansion of the BS price for an at-the-money option.
By making grants before the release of good news, the manager effectively awards himself an in-the-money option, which is more valuable than the at-the-money option that he appears to grant himself.
Lassek explained terms such as margin call, at-the-money option and strike price during the seminar.
Louis' monthly Monetary Trends, said, "Using the trading prices of options on the S&P 100, the CBOE estimates the implied volatility corresponding to a hypothetical at-the-money option with one month to expiration.
However, most of these companies have at-the-money option programs with constant exercise prices.
To wit: while a 60-day at-the-money option might cost 4.
The at-the-money option - which assumes front-month status after the closing bell today - saw open interest climb from 5,948 to 10,932 overnight, suggesting most of the activity was of the buy-to-open variety.
Open interest in these options has risen by 977,000 ounces, effectively trebling and bringing combined call and put open interest at this strike price to 12,999,000 ounces and making this the largest at-the-money option.