Under certain circumstances (see Annex B) the prices for at-the-money
implied volatility and strangles and risk-reversals, respectively, will describe the entire probability distribution for future exchange rates.
option with similar terms would have been valued for disclosure purposes at 25.
Figure 4 depicts how gamma behaves for in-the-money, at-the-money
and out-of-the-money commitments.
If this premise is supported, options closest to at-the-money
should show the strongest negative performance following exercise, while those deepest in-the-money should show the weakest negative or possibly positive performance.
September options contracts account for less metal that the more-active October options strip, yet open interest in $1,650 calls at 5,284 lots is equivalent to 10 percent of total open interest in at-the-money
strikes between $1,600 and $1,750.
out-of-the-money put options, but at-the-money
put options, which would
Employers were actually issuing in-the-money options while leading investors, regulators, and the IRS to believe that the options were issued out-of-the money (or "underwater") or at-the-money
For example, when compared with options, restricted stock usually results in less dilution of existing shareholders' ownership, since a restricted share--effectively an option with a zero exercise price--is worth more than an at-the-money
option, meaning the company needs to grant fewer shares to provide the same level of compensation.
If she is then awarded at-the-money
options dated "as of" June 1, 1999, when Acme's stock price was $35, Amanda has a cushion of $5 of intrinsic value per share.
If a business needs to short hedge with futures, an alternative hedge is proposed by brokers called a synthetic futures hedge that involves the simultaneous buying of a put and the selling of a call at the same at-the-money
The Service presented no evidence that unrelated parties would, pursuant to the fair-value method (FVM), make a cost-sharing allocation of at-the-money
options or employee-stock-purchase-plan purchase rights.
The remaining chapters in Part III of Pay Without Performance discuss various aspects of equity-based compensation that Bebchuk and Fried feel further demonstrate managerial power over the pay-setting process: the widespread use of at-the-money
options, option repricing, reload options, restricted stock in lieu of options, and executives' ability to unwind their equity positions.