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Option spread |
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Option spreadThe 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.Option spread Similar MatchesOptional payment bondOptional payment bondA bond whose principal and/or interest may be paid in foreign or domestic currency at the discretion of the bondholder. Exercising the optionExercising the optionThe act of buying or selling the underlying asset via the option contract. Settlement optionsSettlement optionsThe various options available to the beneficiaries of a life insurance policy in the event of the death of the insured. For example a lump sum or an income. Options Clearing Corporation (OCC)Options Clearing Corporation (OCC)Applies to derivative products. Financial institution that is the actual issuer and guarantor of all listed option contracts. Share optionShare optionAn 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. Further Suggestionsindex optionsReduction Option Loan (ROL) Covered or hedge option strategies Listed option Compound option plain vanilla option/warrant Non Equity Option Postponement option Options contract call option abandoned option Settlement options Path dependent option Real option One-way option Sellers option Spread option Single option Lease With Option To Purchase option to redeem Incentive Stock Option (ISO) Down and in option Irrational call option Intrinsic value of an option Abandonment option |
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