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Out of the money option |
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Out of the money optionA call option is out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. A put option is out of the money if the strike price is lower than the market price of the underlying security.Out of the money option Similar MatchesCompound optionCompound optionOption on an option. Option spreadOption 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. Reduction Option Loan (ROL)Reduction Option Loan (ROL)A hybrid of a fixed-rate and adjustable-rate mortgage. An ROL the borrower to match the current mortgage rate, which then becomes fixed for the rest of the term. This reduction is usually allowed if rates drop more than 2% in a year. Registered options traderRegistered options traderAn American Stock Exchange specialist who monitors a certain group of options to help maintain a fair and orderly market. Option mutual fundOption mutual fundA mutual fund that buys and sells options for aggressive or conservative investment. Further SuggestionsExotic optionDown and in option Class of Options Uncovered options Knock out option Option Pricing Curve European Options Exchange (EOE) traditional options Multi option financing facility Equity options Option writer plain vanilla option/warrant Options Clearing Corporation Nonqualifying stock option Put option Lapsed option option Put an option Lockup option option series Reload Stock Option Long position in an option Postponement option Option not to deliver Call option |
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