Category: Business
Created by: zzcgood
Number of Blossarys: 7
Method of option pricing that assumes the value of an asset increases and decreases by fixed proportions at a predictable schedule. Possible values of the asset can be predicted starting at the ...
Definitions (2) 1. A group of several securities created for the purpose of simultaneous buying and selling. Baskets often play a role in index arbitrage, program trading and hedging. 2. A ...
A type of exotic option that provides a payoff if the value of the underlying reaches or does not reach a predetermined price or "barrier level". Barrier options are characterized as "knock in" if ...
The difference between the strike price of a stock option and the market price of the underlying stock when the option is exercised, times the number of shares purchased. The bargain element is not ...
An unusual futures and option market situation which occurs when an underlying asset in the commodities market is heavily in demand and causes nearby contracts to have a higher price than more ...
A type of stock option used on Asian exchanges. The strike price in this type of option is based on the average asset price during a certain period of time, defined by a range of dates called the ...
An investing derivative whereby the holder has a claim to one unit of the underlying asset if the market price of the asset is below the strike price of the option. If the market price is above the ...
By: zzcgood