In the money and Liquid: Difference between pages

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(ITM).
1.  
1.  


An option is in the money for the holder when immediate exercise of the option would result in a gain for the option holder.
In relation to an asset, able to be turned into cash quickly and without significant loss compared with current market value.




2.  
2.


A derivative such as a swap is in the money when, for example, the swap rate is favourable compared with the current market rate, so that the net present value of the derivative is positive.
In relation to a market, a situation in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.




== See also ==
== See also ==
* [[At the money]]
* [[Cash and cash equivalents]]
* [[Derivative instrument]]
* [[Cash forecasting]]
* [[Exercise]]
* [[Deep market]]
* [[Intrinsic value]]
* [[Illiquid]]
* [[Net present value]] (NPV)
* [[Liquid market]]
* [[Out of the money]]
* [[Liquidate]]
* [[Strike price]]
* [[Liquidation]]
* [[Swap]]
* [[Liquidity]]
* [[Liquidity buffer]]
* [[Liquidity Coverage Ratio]]
* [[Liquidity preference]]
* [[Liquidity management]]
* [[Liquidity premium]]
* [[Liquidity risk]]
* [[Solvency]]
* [[Stress]]
* [[Survival period]]
 
 
=== Other resources ===
*[[Media:2015_06_June_-_Safety_first.pdf| Safety first, The Treasurer, 2015]]


[[Category:The_business_context]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 15:28, 20 May 2020

1.

In relation to an asset, able to be turned into cash quickly and without significant loss compared with current market value.


2.

In relation to a market, a situation in which large quantities of the asset traded in the market can be bought or sold at any time, with low transaction costs, and without affecting the market price.


See also


Other resources