Moneyness

Moneyness is a measure from the theory of the warrants, the quasi ( the current market price ) describes " location " of a warrant in relation to the money ( strike price ):

In colloquial usage, a distinction the three areas

The characteristic describes how close is listed in the money, at the money or the money from the warrant. These calls at the current prices of the underlyings is divided by the Strike Price.

A particular advantage of this indicator in its daily business is that you can read the percentage gain or loss directly. A moneyness of 1.20 means a gain of 20%, while a moneyness of 0.90 indicating a loss of 10%.

For this to work well for put warrants, there is used to determine the moneyness of the reciprocal of

Uses. Thus, here is a moneyness of 1.15 a gain of 15%.

Except in the case warrants the term moneyness often occurs even with Turbo certificates in which - by design - a warrant infected.

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