Paulo Stock Exchange

2.5.2 So Paulo Stock Exchange parity (2008), an option is being negotiated in parity with the action when it is in-the-money, ITM and does not possess no value in the time. Its value is only intrinsic value, does not have value of expectation VE. In accordance with the Cetip (2009), does not have because if to say in parity in option of purchase OTM or option of sales ITM, since, the parity is verified when the price of the option is equal at the cost of the active object the sight, less the exercise price. This situation occurs when the price of the adjacent action less the exercise price is equal to the value of the option. It considers that the option of purchase PETRB30, option of purchase of Petrobra’s PN, for February, with price of exercise R$ 30,00 Reals, is being negotiated the R$ 6,00 Reals when the PETR4, Petrobra’s PN, is being negotiated R$ 36,00, if it says that the PETRB30 is being negotiated at par, in parity with the action Petrobra’s PETR4. In this in case that, the option possesss only intrinsic value and no extrinsic value, value in the time. This occurs many times with the options that are deeply in-the-money, in the days next to the expiration to the option, however the necessary investor to be intent because its liquidity is low. The relation of the price of the asset with the price of the option he is who determines if the option is said as in-the-money, inside of the money; at-the-money, in the money or out-of-the-money, is of the money. Option of purchase in-the-money, ITM? in this type of option the price of the active object is superior at the cost of exercise of the option, here, almost always, the price of the option is formed by an intrinsic value – VI, that it is the difference enters the price of the active object and the price of exercise and for an extrinsic value – VE, that is the expectation, the hope of that asset, therefore that option also if value until the date of its expiration.