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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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

The situation that arises when a security is registered for trading on more than one exchange. Dual listings can lead to increased liquidity for the issue. Some securities listed on one exchange may ...

Domain: Banking; Category: Investment banking

An option in which the underlier is the common stock of a corporation, giving the holder the right to buy or sell its stock, at a specified price, by a specific date. also called stock option.

Domain: Banking; Category: Investment banking

A certificate which guarantees that the securities underlying an option contract are on deposit and will be delivered in the event that the option is exercised. An escrow receipt is issued by the ...

Domain: Banking; Category: Investment banking

Option contracts that have little or no outside interest and are thus unable to be sold for cash at the prevailing market price. This usually occurs when an option is far away from its expiration ...

Domain: Banking; Category: Investment banking

The act of closing out one derivative position that is part of a more complex investment strategy. Examples of multi-legged options include straddles, strangles, straps, and spreads. Legging out ...

Domain: Banking; Category: Investment banking

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