FT MarketWatch

Underwater

A Call option whose strike price is higher than the Market price of the Underlying security, or a put Option whose strike price is lower than the Market price of the underlying security. Thus, there is no incentive to Exercise the Option today. However, the Option still has "time value", value based on the fact that the prices of the Underlier can change. This "time value" diminishes as the Option approaches Maturity.

Related Terms: 18 ACH, Base, Call, Call option, ECU, Exercise, High, Inc., Low, Maturity, Market, Option, Owe, Put, Put option, SEC, Underlier, Underlying security
Other Related Pages: Category: Options Starting With: U
Semi Related Terms: 675 CLICK HERE TO VIEW