ITM Price
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Option of sales in-the-money, ITM, in this type of option the price of the active object is inferior at the cost of exercise of the option, in Brazil the sales options has little liquidity, little is negotiated and if they summarize of the European type. How much to the price it also is composed for VE and VI, as well as in the purchase options. Especially in the options of sales ITM, differently and in contrast of the purchase options, its price is formed only by VE, only valuation hope. Option of sales at-the-money, ATM, in this type of option the price of the active object, as well as in the options of purchase of the same type, he is equal or well next at the cost of exercise to the option, the value of this type of option, that is almost formed only by VE, since the exercise price is very next to the price of the asset. The more distant of expiration of option big will be VE, to step that the option goes if approaching to its expiration the VE it consequently goes diminishing and the value of the option, except how much it becomes much OTM for the valuation of the active object, where she loses VE, but gains VI, in such a way leaving of being ATM. Option of sales out-of-the-money, OTM, here, differently of the options of purchase OTM, the price of the active object is superior at the cost of exercise of the option. Almost always the price of the option of sales OTM is formed by an intrinsic value – VI that it is the difference enter the price of the active object and the price of exercise and for an extrinsic value – VE, that is the expectation, the hope of that one asset, therefore that option also, if value until the date of its expiration. .