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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Out Of The Money


When a stock option has a strike price above the value of the stock.

Yeah... not good.


A stock option has a strike price of $88; then the CFO commits fraud. The stock is now at $5. The option is $83 out of the money.

You probably don't want to buy—just a guess.