Hedging Transaction
[概述]Atypeoftransactionthatlimitsinvestmentriskwiththeuseofderivatives,suchasoptionsandfuturescontracts.Hedgingtransactionspu
Buyer's Call
[概述]Anagreementbetweenabuyerandsellerwherebyacommoditypurchaseoccursataspecificpriceaboveafuturescontractforanidenticalgrade
Over-Hedging
[概述]Ahedgedpositioninwhichtheoffsettingpositionisforagreateramountthantheunderlyingpositionheldbythefirmenteringintothehedge
Speed
[概述]Therateatwhichthegammaofanoptionorwarrantwillchangeinrelationtounderlyingpriceintheunderlyingmarket.Morespecifically,iti
Exchange-Traded Option
[概述]Anoptiontradedonaregulatedexchangewherethetermsofeachoptionarestandardizedbytheexchange.Thecontractisstandardizedsothatu
Time Value
[概述]Theportionoftheoptionpremiumthatisattributabletotheamountoftimeremaininguntiltheexpirationoftheoptioncontract.Basically,
Roll Down
[概述]Whenaninvestorreplacesanoldoptionspositionwithnewoneatalowerstrikeprice.Wheninvestorsarebearishonastocktheywilltypically
Reverse Conversion
[概述]Afinanceandriskmanagementtechniquebasedonaput-callparitystrategythatconsistsofsellingaputandbuyingcall(asyntheticlongpos
Pinning the Strike
[概述]Thetendencyofastock'spricetoclosenearthestrikepriceofheavilytradedoptions(inthesamestock)astheexpirationdatenears.Thisdo
Long-Term Equity Anticipation Securities - LEAPS
[概述]Publiclytradedoptionscontractswithexpirationdatesthatarelongerthanoneyear.Structurally,LEAPSarenodifferentthanshort-term
Baltic Exchange
[概述]Anexchangethathandlesthetradingandsettlementofbothphysicalcontractsandderivativesrelatingtoshippingandmaritimetransporta
Witching Hour
[概述]Thelasthourofstocktradingbetween3pm(whenthebondmarketcloses)and4pmEST.Witchinghouristypicallycontrolledbylargeprofession
Option Class
[概述]Thesetofallthecalloptionsoralltheputoptionsforaparticularstock,indexfund,orfuturessecurityonalistedexchange.Thenumberofo
Warrant Coverage
[概述]Anagreementbetweenacompanyanditsshareholderswherebythecompanyissueswarrantsequaltosomepercentageofthedollaramountofthesh
Reverse Swap
[概述]Anewswapthatundoestheeffectsofanexistingswap(atypeofderivativethatinvolvestheexchangeofcashflowstreams).Areverseswapison
Delta Spread
[概述]Anoptionstradingstrategywherethetraderinitiallyestablishesadeltaneutralposition.Thetradercreatesthisdeltaneutralposition
Lock-Up Option
[概述]Astockoptionofferedbyatargetcompanytoawhiteknightforadditionalequityorforthepurchaseofavaluableportionoftheircompany.Anu
Roll Up
[概述]1.Themovefromoneoptionpositiontoanotherwithahigherexerciseprice.2.Inthecontextofventurecapital,whenaVCforcessmallcompani
Open Interest
[概述]1.Thetotalnumberofoptionsand/orfuturescontractsthatarenotclosedordeliveredonaparticularday.2.Thenumberofbuymarketordersb
Grantor
[概述]1.Asellerofeithercallorputoptionswhoprofitsfromthepremiumforwhichtheoptionsaresold.Synonymouswithoptionwriter.2.Thecreat
Put On A Put
[概述]Oneofthefourtypesofcompoundoptions,thisisaputoptiononanotherunderlyingputoption.Thebuyerofaputonaputhastherightbutnotthe
Fiduciary Call
[概述]Acosteffectivestrategydesignedtolimitthecostsassociatedwithexercisingacalloption.WhenaEuropeancalloptionispurchased,thep
Far Option
[概述]Theoptionwiththelongertimetoexpirationinacalendaroptionspread,whichinvolvesbuyingorsellingoptionswithdifferentexpiration
Asset-or-Nothing Put OptionActuarial EquityAdjusted Exercise PriceAggregate Exercise PriceAgreement Value MethodAnticipatory HedgeAsian OptionAsian TailAccelerated Vesting
[概述]Anoptionpayoffthatisequaltotheasset'spriceiftheassetisbelowthestrikeprice,otherwisethepayoffiszero.Watch:PutOptionTheset
Bear Call Spread
[概述]Atypeofoptionsstrategyusedwhenadeclineinthepriceoftheunderlyingassetisexpected.Itisachievedbysellingcalloptionsataspecif
Writer
[概述]Thesellerofanoptionwhocollectsthepremiumpaymentfromthebuyer.Forexample,awriterholdsashortpositiononacalloption.Ifthecall
Chicago Board Of Trade - CBOT
[概述]Acommodityexchangeestablishedin1848thattodaytradesinbothagriculturalandfinancialcontracts.TheCBOToriginallytradedonlyagr
Basket Option
[概述]Atypeofoptionwhoseunderlyingassetisabasketofcommodities,securities,orcurrencies.Acurrencybasketoptionprovidesacheapermet
Perpetual Option - XPO
[概述]Anon-standardfinancialoptionwithnofixedmaturityandnoexerciselimit.Whilethelifeofastandardoptioncanvaryfromafewdaystoseve
Mid-Atlantic Option
[概述]Anoptionthatcanbeexercisedatdifferenttimesduringthelifeoftheoption.Thevarioustimessetforexercisearewrittenwithintheoptio
Put Option
[概述]Anoptioncontractgivingtheownertheright,butnottheobligation,tosellaspecifiedamountofanunderlyingsecurityataspecifiedprice
New York Mercantile Exchange - NYMEX
[概述]Theworld'slargestphysicalcommodityfuturesexchange.Tradingisconductedthroughtwodivisions:theNYMEXDivision,whichishometoth
Exercise Limit
[概述]Arestrictionontheamountofoptioncontractsofasingleclassthatanyonepersonorcompanycanexercisewithinafixedtimeperiod(usually
Swap Transferring Risk With Participating Element - STRIPE
[概述]Aspecifictypeofhedgingtechnique.STRIPEscombineinterestrateswapsandinterestratecapsinordertoprotecttheborrowerfromchanges
CBOE Nasdaq Volatility Index - VXN
[概述]AvolatilityindexontheChicagoBoardOptionsExchange,knownbyitstickersymbolVXN.TheVXNisameasureofimpliedvolatilityfortheNasd
Back Fee
[概述]Thepremiumchargeduponthesecondtermorportionofacompoundoption.Inotherwords,thebackfeeisthefeepaidbytheownerofacompoundopt
Covered Combination
[概述]Anoptionstrategythatinvolvesthesimultaneoussaleofanout-of-the-moneycallandaputwiththesameexpirationdateonasecurityownedb
Up-and-Out Option
[概述]Atypeofoptionthatceasestoexistwhenthepriceofitsunderlyingassethasreachedapre-specifiedpricelevel.Thisisaformofanexoticop
Shout Option
[概述]Anexoticoptionthatallowstheholdertolockinadefinedprofitwhilemaintainingtherighttocontinueparticipatingingainswithoutalos
Roll Forward
[概述]Whenaninvestorreplacesanoldoptionspositionwithanewonehavingalaterexpirationdate(andsamestrikeprice).Thisissometimesrefer