0
Add your answer:
Earn +20 pts
What is the difference between fiat money and token money?
Token money is a type of money whose intrinsic worth is less than its nominal value eg its value as money is less than its value as metal while fiat money is a type of money which intrinsic value is more than its nominal value.
What is the difference between being "out of the money" and "in the money" when it comes to options trading?
Being "out of the money" means the option has no intrinsic value based on the current market price, while being "in the money" means the option has intrinsic value because it can be exercised profitably.
How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
What is the difference between a real asset and a financial asset?
A real asset is a tangible asset like gold or real estate. You can hold it or place your hand on it. It has intrinsic value in and of itself. A financial asset is not tangible. Instead, its existence is "represented by evidence of its existence such as a paper certificate, like money, a savings passbook, a stock certificate, or a bond. The paper in money has no intrinsic value. Its value is derived by virtue of what it represents.
What is the difference between gold and money?
Gold is a precious metal that has intrinsic value and is used as a form of currency. Money, on the other hand, is a medium of exchange that can take various forms, such as coins, paper bills, or digital currency. While gold has inherent value due to its scarcity and properties, money's value is based on trust in the issuing authority and its acceptance in transactions.
What is the difference between fiat money and token money?
Token money is a type of money whose intrinsic worth is less than its nominal value eg its value as money is less than its value as metal while fiat money is a type of money which intrinsic value is more than its nominal value.
What is the difference between being "out of the money" and "in the money" when it comes to options trading?
Being "out of the money" means the option has no intrinsic value based on the current market price, while being "in the money" means the option has intrinsic value because it can be exercised profitably.
What is the difference between Fiat money and legal tender?
Fiat money is the money with no intrinsic value and its value is guaranteed by the monetary authority. Thus, Fiat money is with legal tender. People is bound to accept it.
What is the difference between a commodity form of money and token money?
A commodity form of money is when the value of the money is determined by the intrinsic worth of what makes it. For example, if the money is salt (as was used by the Roman empire) then the value of the money is the same as the value of the same weight of salt in another form. A token form of money is when a form of money (for example a coin) is created that has little or no intrinsic value, but has value because a company or person has agreed to exchange the token for a good or service of value. One example is bus tokens - small coins that can be presented on buses in exchange for transportation.
What is the difference between intrinsic value and subjective value?
Intrinsic value is the nature of the product and subjective value is what that item means to that person. Like if you were stranded on island water would mean more to you to have then lets say 3 diamonds.
How do you determine whether the currency option is in the money?
"In the Money" is a term used in option trading as a determinate to if an option has "Intrinsic Value." In the Money, does NOT mean in profit. There are two components to an option value, TIME VALUE, and INTRINSIC VALUE. Time Value + Intrinsic Value = Option Premium. When the market price is above the option strike price of a CALL option, that option is considered "In the Money" i.e. having intrinsic value. When the market price is below the option strike price of a PUT option, that option is considered "In the Money" i.e. having intrinsic value.
What is the difference between a real asset and a financial asset?
A real asset is a tangible asset like gold or real estate. You can hold it or place your hand on it. It has intrinsic value in and of itself. A financial asset is not tangible. Instead, its existence is "represented by evidence of its existence such as a paper certificate, like money, a savings passbook, a stock certificate, or a bond. The paper in money has no intrinsic value. Its value is derived by virtue of what it represents.
What type of money has value based on intrinsic worth?
Commodity money
What are the two factors depend on expiration?
Expiration depends on the option premium and the intrinsic value. The option premium is the price paid for the option contract, while the intrinsic value is the difference between the current stock price and the strike price of the option.
What is the difference between gold and money?
Gold is a precious metal that has intrinsic value and is used as a form of currency. Money, on the other hand, is a medium of exchange that can take various forms, such as coins, paper bills, or digital currency. While gold has inherent value due to its scarcity and properties, money's value is based on trust in the issuing authority and its acceptance in transactions.
Money is the most liquid asset available because?
it has intrinsic value
What kind of money has no value except as a medium of exchange?
The term "fiat money" means money backed by the credit of the issuer, and has no intrinsic value.
