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Index option |
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Index optionA call or put option based on a stock market index.Index option Similar MatchesVirtual currency optionVirtual currency optionA new option contract introduced by the PHLX in 1994 that is settled in US dollars rather than in the underlying currency. These options are also called 3-Ds (dollar-denominated delivery). Physical optionPhysical optionAn option whose underlying security is a physical commodity that is not stock or futures. The physical commodity itself (a currency, treasury debt issue, commodity) - underlies that option contract. See also index option. European Options Exchange (EOE)European Options Exchange (EOE)Now AEX-Optiebeurs. See: Amsterdam Exchanges (AEX). Stock optionStock optionAn option whose underlying asset is the common stock of a corporation. 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. Further SuggestionsIrrational call optionOne-way option Optional payment bond Qualifying stock option Binomial option pricing model Nonqualifying stock option call option Liquid yield option note (LYON) Call an option Indexed Stock Options Basket options Path dependent option Exotic option Currency call option Lease With Option To Purchase Equity options lapsed option Reduction Option Loan (ROL) Real option In the money option Option premium European style option Class of Options Kuala Lumpur Options and Financial Futures Exchange (KLOFFE) qualified stock option |
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