摘要:
A fence or collar is an option strategy that establishes a trading band around a security or commodity, generally to protect profits. One form of a fence involves the sale of an out-of-the-money ca[阅读全文:]
摘要: A practice where option holders fraudulently claim to have exercised their call options at a specific time in the past, where in reality, the options were exercised much later. Exercise backdating is [阅读全文:]
摘要: A restriction on the amount of option contracts of a single class that any one person or company can exercise within a fixed time period (usually a period of five business days). This limit is in plac[阅读全文:]
摘要: The price at which the underlying security can be purchased (call option) or sold (put option). The exercise price is determined at the time the option contract is formed.
Also known as the "[阅读全文:]
摘要: An embedded option within a project that allows the firm abort their operations at little or no cost. An exit option can typically only be exercised after key developments have occurred within the pro[阅读全文:]
摘要: When an option or other security is exercised prior to its maturity date.
European options don't allow early exercise, whereas American-style options do.
[阅读全文:]
摘要: A relatively new form of derivative contract (the first ones were traded in 2002) that is based on the future value of some national economic indicator, such as non-farm payrolls, the purchasing manag[阅读全文:]
摘要: A derivative instrument with underlying assets based on equity securities. An equity derivative's value will fluctuate with changes in its underlying asset's equity, which is usually measured by sha[阅读全文:]
摘要: A bank guarantee that an option writer has the underlying security on deposit and that the underlying security is readily available for delivery if the option is exercised.
The use of escrow acc[阅读全文:]
摘要: An option that can only be exercised at the end of its life, at its maturity. European options tend to sometimes trade at a discount to its comparable American option. This is because American options[阅读全文:]