Home > Blossary: Options Terms and Definitions
Option is the right, but not the obligation, to buy or sell a specific amount of a given stock, commodity, currency, index, or debt, at a specified price during a specified period of time. This glossary will give you insights into the world of Option.

Category: Business

20 Terms

Created by: zzcgood

Number of Blossarys: 7

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A type of stock option used on Asian exchanges. The strike price in this type of option is based on the average asset price during a certain period of time, defined by a range of dates called the ...

Domain: Banking; Category: Investment banking

An unusual futures and option market situation which occurs when an underlying asset in the commodities market is heavily in demand and causes nearby contracts to have a higher price than more ...

Domain: Banking; Category: Investment banking

The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, times the number of shares purchased. The bargain element is not ...

Domain: Banking; Category: Investment banking

A type of exotic option that provides a payoff if the value of the underlying reaches or does not reach a predetermined price or "barrier level". Barrier options are characterized as "knock in" if ...

Domain: Banking; Category: Investment banking

Definitions (2) 1. A group of several securities created for the purpose of simultaneous buying and selling. Baskets often play a role in index arbitrage, program trading and hedging. 2. A ...

Domain: Banking; Category: Investment banking

Method of option pricing that assumes the value of an asset increases and decreases by fixed proportions at a predictable schedule. Possible values of the asset can be predicted starting at the ...

Domain: Banking; Category: Investment banking

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