There are different kinds of prices associated with Options contracts, these include Strike Price of the Underlying asset or commodity which is used to determine whether the contract is In The Money, At The Money or Out Of The Money. Also, the Bid Price (how much the trader will get if they sell the option) and Ask or Offer Price (how much they must pay to purchase the option). Understanding the difference between each of these price classifications is essential to trade Options successfully.
Contributed by: Ralph Windsor
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OptionsNarrower
Ask, Bid Price, Bid-Offer Spread, Black Scholes, Implied Volatility, Mid Price, Offer Price, Options Chain, Put-Call Parity, Strike PriceShare this Page
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