Chapter 2 - Option Price and Option Moneyness

In this chapter, we shall study some crucial concepts that pertain to options. These include the two elements of option price (intrinsic value and time value) and moneyness of an Option. We will also cover how to calculate the breakeven point of an option, how to calculate the profit/loss potential of an option and discuss about the option payoff charts. We will conclude this chapter by talking about the key terminologies that were covered over the course of this chapter.

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