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

Intrinsic value of an option

Intrinsic value of an option

The amount by which an option is in the money. An option that is not in the money has no intrinsic value.


Asian option

Asian option

Option based on the average price of the underlying assets during the life of the option.


In the money option

In the money option

An option that has value.


Share option

Share option

An incentive given to company directors and employees to promote loyalty and commitment.The employee is offered an option to buy shares in the company at a fixed price, at or below the then market price. The option specifies the time during which the employee can exercise the right, and often this will be a period of years. If the company's share price rises in that period, the employee can exercise the option, acquire the shares at the option price, and immediately sell them for a capital gain. If the company's shares do not rise, the employee may take the view that the option is not worth exercising. The option mechanism thus gives the employee discretion.Tax liabilities may be reduced on gains where schemes are approved by the Inland Revenue.


Indexed Stock Options

Indexed Stock Options

Options 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 Suggestions

Optional dividend
settlement options
equity options
Virtual currency option
option writer
Listed option
Option price
Index and Option Market (IOM)
Conventional option
Out of the money option
Split fee option
Arbitrage free option pricing models
Registered options trader
plain vanilla option/warrant
Index option
Class of Options
Currency call option
result of exercising option
Options contract multiple
Put option
Switching options
Option not to deliver
Settlement options
Call option
Sellers option


 
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