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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 MatchesBasket optionsBasket optionsPackages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket. Options on physicalsOptions on physicalsInterest rate options written on fixed income securities, as opposed to those written on interest rate futures contracts. Over the Counter OptionOver the Counter OptionAn option traded off-exchange, as opposed to a listed stock option. The OTC option has a direct link between buyer and seller, has no secondary market, and has no standardization of striking prices and expiration dates. See also Secondary Market. Put optionPut optionAn option which gives the holder the right but not the obligation to sell shares (or other financial instrument) at a fixed price on or before a given date.Every put option has an exercise price. This is the price at which the holder is entitled to sell the shares to the option writer. If the price of the share falls below the exercise price, the option is said to be 'in the money' and to have an intrinsic value which is equal to the difference between the two.For instance, an option which entitles the holder to sell shares in XYZ at 80p has an intrinsic value of 8p if the price of XYZ's shares falls to 72p.If the price of XYZ's shares rose to 90p, on the other hand, the put option would have no intrinsic value because it would not be in the holder's interests to sell the shares at 80p. The only value which the put option would then have would be its time value. Sellers optionSellers optionDelayed settlement/delivery in a transaction. Further SuggestionsLondon International Financial Futures and Options ExchangeRegistered options trader Split fee option qualified stock option Stock option Put option Exotic option result of exercising option Covered or hedge option strategies Tax deferral option Single option call option Equity options One-way option Nonqualifying stock option Postponement option Option account Liquid yield option note (LYON) Non Equity Option Option cycle Indexed Stock Options Physical option Swiss Options and Financial Futures Exchange (SOFFEX) Intrinsic value of an option Doubling option |
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