Dictionary

moneyness en · NOUN

Etymology

Etymology tree Latin Monēta Latin monēta Old French moneie Old French monoie Anglo-Norman muneiebor. Middle English moneye English money Proto-Germanic *-inōną Proto-Indo-European *-dyé- Proto-Germanic *-atjaną Proto-Indo-European *-tus Proto-Germanic *-þuz Proto-Germanic *-assuz Proto-Germanic *-inassuz Proto-West Germanic *-nassī Old English -nes Middle English -nesse English -ness English moneyness From money + -ness.

Meanings

1. (qualifier:derivative securities, uncountable, usually) 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.
   • As an option's expiration date approaches only its moneyness has value.
2. (uncountable, usually) The degree to which an asset approximates cash in its ready liquidity and the low transactions costs in realizing that liquidity.
   • 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. 2004, Peter Joseph Drake, Currency, Credit and Commerce: Early Growth in Southeast Asia, page 98:
   • In good times everything seems to have moneyness; in bad times, some money doesn't have much moneyness.

Forms