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:]
摘要: The probability that an asset's value will decline in one period’s time within the context of an option pricing model. The option pricing models using a down transition probability are both the[阅读全文:]
摘要: A form of a knock-in option whose payoff is determined by the price of the underlying asset sinking to the barrier price level.
If the underlying asset does reach the barrier price level, the d[阅读全文:]
摘要: The ratio comparing the change in the price of the underlying asset to the corresponding change in the price of a derivative. Sometimes referred to as the "hedge ratio".
For example, w[阅读全文:]
摘要: A possibile situation where the financial markets plunge into chaos if the massive derivatives positions owned by hedge funds and the large banks were to move against those parties.
Institution[阅读全文:]
摘要: A security whose price is dependent upon or derived from one or more underlying assets. The derivative itself is merely a contract between two or more parties. Its value is determined by fluctuations [阅读全文:]
摘要: An options strategy established by simultaneously entering into a long and short position in two options of the same type (two call options or two put options) but with different strike prices and exp[阅读全文:]
摘要: An option whose payout is fixed after the underlying stock exceeds the predetermined threshold or strike price.
Also referred to as "binary" or "all-or-nothing option."
The v[阅读全文:]