Tag Archives: derivatives
Stock Options
Stock Options
A contract between two parties that gives the buyer the right to buy or sell underlying stocks at a predetermined price a...
Interest rate collar
Interest rate collar
An option strategy that limits the range of possibility of positive or negative returns on an underlying asset is ...
Basket Option
Basket Option
A basket option is a type of financial derivative of which the underlying asset is a “basket” of commodities, securities,...
In The Money vs Out Of The Money Options
In The Money vs Out Of The Money Options
In options trading, the difference between "in the money" (ITM) and "out of the money" (OTM) i...
Binary Options
Binary Options
The term Binary means the option pays a set dollar amount at expiration if the option is above the strike price or the o...
Embedded Options
Embedded Options
Options are financial instruments called derivatives which are based on the value of underlying securities known as st...
Cheapest to Deliver
Cheapest to Deliver
Cheapest to deliver is a method that is used to estimate which is the least expensive future contract for a seller ...
Option Premium
Option Premium
Options are derivatives that are financial instruments whose price is based on the value of the underlying security such...
Theta in Options Trading
Theta in Options Trading
Option Greeks are the measures of the rate of the change of the option pricing valuation. Theta is the one fa...
Delta Hedging
Delta Hedging
Hedging is the strategy to minimize or offsetting the risk of losing money due to market volatility in commodities, curre...