Options Markets and Properties of Options
Free GARP FRM Part I lesson in Financial Markets and Products. 18 min read, ~2,678 words.
Moneyness: ITM = positive intrinsic, OTM = zero intrinsic, ATM = strike near spot; intrinsic + time value = premium, and ATM options carry the largest time value. Six drivers (S, K, T, σ, r, D) move calls and puts oppositely on most inputs, but higher volatility raises both. Lower...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
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