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Asian option |
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Asian optionOption based on the average price of the underlying assets during the life of the option.Asian option Similar MatchesOptions contract multipleOptions contract multipleA constant, set at $100, that when multiplied by the cash index value gives the dollar value of the stock index underlying an option. That is the dollar value of the underlying stock index = Cash index value x $100 (the options contract multiple). Share optionShare optionAn incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue. Options on physicalsOptions on physicalsInterest rate options written on fixed income securities, as opposed to those written on interest rate futures contracts. Call an optionCall an optionTo exercise a call option. Switching optionsSwitching optionsA sequence of transactions in which exercise of one option creates one or more additional options. Investment-disinvestment, entry-exit, expansion-contraction, and suspension-reactivation decisions are switching options. Further SuggestionsAbandonment optionPostponement option Optional dividend Covered or hedge option strategies Option Pricing Curve Path dependent option Class of Options Real option European style option Option spread Qualifying stock option Out of the money option Non Equity Option option to redeem Tax timing option result of exercising option lapsed option Long position in an option Barrier options Two state option pricing model Option agreement index options option series Put an option Chicago Board Options Exchange (CBOE) |
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