Hedge Fund Glossary

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Out-of-the-Money

a stock Option is Out of the Money when the holder cannot exercise it for a profit. A Convertible Bond is Out of the Money when its Conversion Value is less than its Par Value. In the case of a Call, the price of the asset underlying the Option is less than the Strike Price; and in the case of a Put, the price of the asset underlying the Option is more than the Strike Price.

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is a comprehensive glossary of hedge fund slang, legal and regulatory terminology, and acronyms.

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