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Equity options |
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Equity optionsSecurities that give the holder the right (but not the obligation) to buy or sell a specified number of shares of stock, at a specified price for a certain (limited) time period. Typically one option equals 100 shares of stock.Equity optionsOptions on the shares of companies. Equity options are traded in the UK at the London International Financial Futures and Options Exchange (LIFFE) and the London Securities and Derivatives Exchange (OMLX).Similar MatchesIndex optionsIndex optionsCall or put options on an index such as the Standard and Poor's 500 Index or the FTSE 100 Index.Index options are exercisable into cash rather than the underlying shares in the index. This differentiates them from equity options which are exercisable into the shares to which the option relates.In the USA, index options are traded on a number of exchanges including the New York and Chicago Board Options Exchanges. In the UK, index options are traded on the London International Financial Futures and Options Exchange. (LIFFE) Options 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). Conditional call optionsConditional call optionsA protective guarantee that, in the event a high yield bond is called, the issuing corporation will ../../finance-glossary/ the bond with a noncallable bond of the same life and terms as the bond that is being called. London International Financial Futures and Options ExchangeLondon International Financial Futures and Options ExchangeA futures and options exchange, located in London, which originally dealt only in financial instruments including equities (shares), government bonds, indices (such as the FTSE 100 Index) interest rates and a wide range of currencies. In 1996, LIFFE merged with the London Commodity Exchange with unified administration and exchange systems. All trades of the merged exchange are guaranteed by the London Clearing House (LCH). LIFFE is a Recognised Investment Exchange (RIE), regulated by the Financial Services Authority (FSA). Indexed Stock OptionsIndexed Stock OptionsOptions that have an exercise price which may fluctuate above or below market value at performance options in that the exercise price of indexed options typically remains variable until the option is exercised. Further SuggestionsTransferable Stock OptionsSettlement options Options Clearing Corporation (OCC) Options on physicals Margin requirement (options) Options contract Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Options Clearing Corporation Class of Options MONEP (Marche des Options Negociables de Paris) London International Financial Futures and Options Exchange (LIFFE) FLEX Options European Options Exchange (EOE) Barrier options Registered options trader Gnma (government National Mortgage Association) Options settlement options traditional options Uncovered options Swiss Options and Financial Futures Exchange (SOFFEX) Basket options Chicago Board Options Exchange (CBOE) Switching options |
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