Wasting asset - Financial definition

  Concise definition of the term wasting asset

A term often used to describe an option because of its limited life. Shortly before its expiration, an out-of-the-money option has only time value, which declines rapidly. For an in-the-money option, only intrinsic value is left upon expiration. At the end of its life, an option that has no intrinsic value is worthless, ie it has wasted away.

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