Meaning of moneyness | Babel Free

Definitions

1. 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.
   uncountable, usually
2. The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity.
   uncountable, usually

Examples

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

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

“It is this undiscriminating acceptability which confers 'moneyness' on some things, regardless of the fact that others may also serve⟳ such subsidiary money functions as being a store of value or unit of account.”

CEFR level