One-way option


 

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One-way option

Refers to the situation of a speculator on an exchange market with a pegged exchange rate. If there is doubt about the viability of the peg, the speculator can sell the currency short knowing that there is only one direction (one way) that the currency is likely to move. Therefore there is little risk associated with such speculation.



Similar Matches

Conditional call options

Conditional call options

A 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.


Option not to deliver

Option not to deliver

In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.


Exercising the option

Exercising the option

The act of buying or selling the underlying asset via the option contract.


Physical option

Physical option

An 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.


Arbitrage free option pricing models

Arbitrage free option pricing models

Yield curve option-pricing models.


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Bargain purchase price option
Options Clearing Corporation (OCC)
qualified stock option
Gnma (government National Mortgage Association) Options
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result of exercising option
Quality option
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settlement options
MONEP (Marche des Options Negociables de Paris)
Optional payment bond
Non Equity Option
London International Financial Futures and Options Exchange (LIFFE)
Stock option
Irrational call option
Lockup option
Two state option pricing model
Exotic option
share option
Currency option
option to redeem
Greenshoe option


 
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