|
|
Option writer |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Option writerThe initial 'seller' of an option. He has to fulfil the terms of the option contract if the holder choose to exercise it. So if the holder exercises a call option to buy some shares, the option writer has to deliver the shares. Note that the option writer has an obligation, but no rights. It is not up to him whether the option is exercised.Option writerSee: Option sellerOption writer Similar MatchesPut 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. Chicago Board Options Exchange (CBOE)Chicago Board Options Exchange (CBOE)A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place stock options, foreign currency options, and index options (S&P 100, 500, and OTC 250 index) Qualified stock optionQualified stock optionA US stock option, given to executives and employees, which complies with the requirements of the Internal Revenue Service. A qualified stock option is not subject to tax at the grant date or when exercised. 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. Intrinsic value of an optionIntrinsic value of an optionThe amount by which an option is in the money. An option that is not in the money has no intrinsic value. Further SuggestionsTax deferral optionClass of Options London International Financial Futures and Options Exchange Options Clearing Corporation Irrational call option option to redeem Liquid yield option note (LYON) lapsed option Lockup option Option spread Exotic option abandoned option European Options Exchange (EOE) Currency option Knock out option In the money option Call option Quality option Doubling option Out of the money option Foreign currency option Option not to deliver Reduction Option Loan (ROL) Covered option call option |
|
|
|