Meta Mammon is an option market of high scores of Media Mammon players. The underlying asset of the option is the position of a player in the high score list. The value of this asset varies between $30 (for the number 1) and $1 (for number 30 in the list).
Option buyers have the right, but not the obligation, to buy (call) or sell (put) the underlying asset at a specified price until the expiration date.
There are two kinds of options: calls and puts. Call options give you the right to buy the underlying asset. Put options give you the right to sell the underlying asset.
Call options make you money when the underlying value increases. Put options make you money when the underlying value decreases.
The price at which an asset can be purchased or sold if the option
is exercised is called the strike price.
Options are available in several strike prices above and below the current price
of the underlying asset.
The date the option expires is referred to as the expiration date.
The price of an option is called the premium. An option's premium is determined by a number of factors including the current price of the underlying asset, the strike price of the option, the time remaining until expiration, and volatility. In Meta Mammon it is calculated using the model derived by Black and Scholes.
An option premium is priced on a per share basis. Each option on a stock corresponds to 100 shares. Therefore, if the premium of an option is priced at 2, the total premium for that option would be $200.
When the strike price of a call option is below the price of the underlying asset
the option is said to be 'in-the-money'. A put option is in-the-money when the strike
price is above the price of the asset.
The difference between the option's strike price and the price of the asset is called
the intrinsic value. If the intrinsic value is higher than the premium you paid to
obtain the option, you will make a profit when you exercise the option.
When the expiration date has been reached the option will be exercised automatically when the option is in-the-money.
When options are exercised, the intrinsic value of the options is added to your cash.
When a Media Mammon account is terminated, your option is deleted.
If a Media Mammon player leaves the top 30 list, the asset's value becomes $0. Put options can still be exercised.
