Decision prices once an option has been purchased only two, Financial Management

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Decision prices once an option has been purchased only two

1. Decision Prices. Once an option has been purchased, only two prices or rates are part of the holder’s decision-making process. Which two and why?

2. Option Values and Money. Options are often described as in-the-money, at-the-money, or out-of-the-money. What does that mean and how is it determined?

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Financial Management: Decision prices once an option has been purchased only two

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