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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.
