Risk Graph

(redirected from Risk Graphs)

Risk Graph

A chart describing the potential profit or loss of an option if it is exercised when the underlying asset is at different prices. A risk graph provides a quick reference as to whether an option is in-the-money or out-of-the money. It can be helpful in determining whether an option is worth buying, depending on how close it is to expiration and the expected movement of the underlying asset.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Second, we determined that side-by-side risk graphs often confuse people.
Full browser ?