Down and out option


 

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Down and out option

Barrier option that expires if asset price hits a predetermined price level.



Down and out option

Similar Matches

Tax deferral option

Tax deferral option

Allowing the capital gains tax on an asset to be payable only when the gain is realized by selling the asset.


Option spread

Option spread

The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.


Option writer

Option writer

The initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised.


Index and Option Market (IOM)

Index and Option Market (IOM)

A division of the CME established in 1982 for trading stock index products and options.


Option premium

Option premium

The 'price' of the option, paid by the buyer.


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American style option
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Physical option
Option writer
Index option
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Lapsed option
Option series
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One-way option
index options
European option
share option


 
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