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Option price |
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Option priceAlso called the option premium; the price the buyer of the options contract pays for the right to buy or sell a security at a specified price in the future.Option price Similar MatchesAbandonment optionAbandonment optionThe option of terminating an investment earlier than originally planned. FLEX OptionsFLEX OptionsExchange traded equity or index options, where the investor can specify within certain limits, the terms of the options, such as exercise price Expiration date, exercise type, and settlement calculation. Basket optionsBasket optionsPackages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket. Put optionPut optionThis security gives investors the right to sell (or put) a fixed number of shares at a fixed price within a given period. An investor, for example, might wish to have the right to sell shares of a stock at a certain price by a certain time in order to protect, or hedge, an existing investment. Call optionCall optionAn option which gives the holder the right but not the obligation to purchase a stated quantity of the underlying instrument (for example shares, indices, commodities etc) at a specified price on or before a given date. Further SuggestionsIntrinsic value of an optionKnock out option Option seller Options Clearing Corporation (OCC) Binomial option pricing model Option premium Down and in option Doubling option Tax timing option Options Clearing Corporation Call option Put an option Lapsed option incentive stock option put option Indexed Stock Options Option cycle Optional dividend Index option Down and out option Stock option Non Equity Option Spread option Asian option Exotic option |
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