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Second NTM


It stands for second near the money; Options whose market price is very near to the strike price (exercise price)- very much “near in the money” (NTM), so to speak- and expire in the next adjacent month. For example, a March call option with a strike price of USD 50 would be second near the money if its market price (the market price of its underlying) is USD 53 and if the current month is February.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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