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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 MatchesLondon 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). Margin requirement (options)Margin requirement (options)The amount of cash an uncovered (naked) option writer is required to deposit and maintain to cover his daily position valuation and reasonably foreseeable intraday price changes. Settlement optionsSettlement optionsThe various options available to the beneficiaries of a life insurance policy in the event of the death of the insured. For example a lump sum or an income. Barrier optionsBarrier optionsOption contracts with trigger points that, when crossed, automatically generate buying or selling of other options. These are exotic options. Index 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) Further SuggestionsLondon International Financial Futures and Options Exchange (LIFFE)Swiss Options and Financial Futures Exchange (SOFFEX) Options on physicals Options contract multiple Switching options Settlement options Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) Chicago Board Options Exchange (CBOE) Class of Options Options contract Registered options trader European Options Exchange (EOE) traditional options Gnma (government National Mortgage Association) Options MONEP (Marche des Options Negociables de Paris) Uncovered options Basket options FLEX Options Options Clearing Corporation Transferable Stock Options Indexed Stock Options Conditional call options Options Clearing Corporation (OCC) |
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