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.


Foreign currency option

Foreign currency option

An option that conveys the right (but not the obligation) to buy or sell a specified amount of foreign currency at a specified price within a specified time period.


Binomial option pricing model

Binomial option pricing model

An option pricing model in which the option can assume one of only two possible, discrete values in the next time period for each value that it can take on in the preceding time period.


Option spread

Option spread

The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.


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.


Further Suggestions

traditional options
MONEP (Marche des Options Negociables de Paris)
result of exercising option
Lookback option
Call option
qualified stock option
Index and Option Market (IOM)
Exercising the option
Single option
incentive stock option
call option
Compound option
Switching options
Option price
Option holder
abandoned option
Abandonment option
Doubling option
Currency put option
put option
European option
Option series
Real option
Multi option financing facility
Incentive Stock Option (ISO)


 
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