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Daily Archives: January 31, 2025

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Options: What are In the Money-ITM and Out of the Money-OTM?

Foreign Exchange, Indian Financial SystemBy Surendra NaikJanuary 31, 2025

Options are contracts through which a seller gives a buyer the right, but not the obligation, to buy or sell a specified asset (Ex: Foreign currency, shares, equities, commodities etc.) at a predetermined price, by a certain date. It means they acquire or dispose of the underlying asset at that price called the strike price.…

Understanding Rights Debentures for Working Capital

Indian Financial SystemBy Surendra NaikJanuary 31, 2025

A “right debenture” is a form of convertible debenture, granting the holder additional rights beyond just receiving interest payments. It allows the holder to convert the debenture into a certain number of shares of the issuing company at a predetermined price within a specific timeframe, essentially giving them the option to become part-owners of the…

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