What is the Intrinsic Value?
Intrinsic Value is the difference between the underlying security’s current market price and the strike price of the option contract. Only In The Money options have intrinsic value.
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What is the Net Asset Value (NAV) of a scheme?
The performance of a particular scheme of a mutual fund is denoted by its NAV. In simple words, NAV is the market value of the securities held by the scheme. Since the market value of securities changes every day, NAV of a scheme also varies on day ...
Does the Net Asset Value (NAV) change on a daily basis?
Yes. Mutual funds invest the money collected from the investors in the securities markets. Since the value of the securities changes every day, NAV of a scheme also varies on a day to day basis.
What is a Derivative?
A derivative is a mutual contract between two parties which derivatives its value from an underlying asset. These contracts are time-bound contracts whose value changes in accordance with the value of the underlying asset.
What is a stock split?
A stock split is a corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares. Although the number of shares outstanding increases by a specific multiple, the total value of the shares ...
What is underlying? What is the difference between an underlying and a derivative contract?
In derivatives trading, an underlying asset is the financial instrument represented by a derivative and is what gives a derivative its value. An underlying asset often takes the form of stocks, bonds, indices, currencies or commodities, but it can be ...