Category: Education
Created by: SingleWriter
Number of Blossarys: 3
American options are usually the kinds of options that are used all over America and are also used dominantly all over the world. These options have an expiry date mentioned in the contract and it ...
European options are those special kinds of options that are mostly used in the region of Europe. The special characteristic of these types of option is that they can only be exercised when an option ...
An option is considered as at the money when the option holder has the potential to break even by exercising it at the exercise price. This will usually be the case when the exercise price of the ...
Call option is a right given to the holder of the asset where he can buy a predetermined quantity of the asset in future. This purchase has to be made at a price that is determined today. It must be ...
Covered call strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done by ...
Exercising an option is a term that is used when an option is exercised. This option is included in the contract, and when this option is brought in motion, or an act of buy of sell is made in ...
Expiry is basically the date where an option is matured. It is also sometimes called the maturity date of an option, or an expiry date. This date is also mentioned in the contract of the option in ...