Definitions for moneyness
mon·ey·ness

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1. moneynessnoun

   The degree to which a derivative security is in the money, because of the relationship of the price of the underlying security to a conversion price or exercise price.

   As an option's expiration date approaches only its moneyness has value.

2. moneynessnoun

   The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity.

   In good times everything seems to have moneyness; in bad times, some money doesn't have much moneyness.

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1. Moneyness

   In finance, moneyness is the relative position of the current price of an underlying asset with respect to the strike price of a derivative, most commonly a call option or a put option. Moneyness is firstly a three-fold classification: if the derivative would make money if it were to expire today, it is said to be in the money, while if it would not make money it is said to be out of the money, and if the current price and strike price are equal, it is said to be at the money. There are two slightly different definitions, according to whether one uses the current price or future price, specified as "at the money spot" or "at the money forward", etc. This rough classification can be quantified by various definitions to express the moneyness as a number, measuring how far the asset is in the money or out of the money with respect to the strike – or conversely how far a strike is in or out of the money with respect to the spot price of the asset. This quantified notion of moneyness is most importantly used in defining the relative volatility surface: the implied volatility in terms of moneyness, rather than absolute price. The most basic of these measures is simple moneyness, which is the ratio of spot to strike, or the reciprocal, depending on convention. A particularly important measure of moneyness is the likelihood that the derivative will expire in the money, in the risk-neutral measure. It can be measured in percentage probability of expiring in the money, which is the forward value of a binary call option with the given strike, and is equal to the auxiliary N term in the Black–Scholes formula. This can also be measured in standard deviations, measuring how far above or below the strike price the current price is, in terms of volatility; this quantity is given by d2. Another closely related measure of moneyness is the Delta of a call or put option, which is often used by traders but actually equals N, not N, and there are others, with convention depending on market.

How to pronounce moneyness?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say moneyness in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of moneyness in Chaldean Numerology is: 2

2. Pythagorean Numerology

   The numerical value of moneyness in Pythagorean Numerology is: 3

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Moneyness
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=moneyness