Compound Options
Compound Options (Words<500)
A compound option is an option on another option. A split-free or compound option is an option for wh...
Tag Archives: option
04
Jan
Effective Duration
Effective Duration (Words <500)
The duration calculation for bonds that have embedded options is known as effective duration. It he...
24
Oct
Strangle Strategy
Strangle Strategy
To make it cheaper to execute the option strangle is the slight modification of the straddle. A strangle can hold bot...
02
Oct
Lookback Options
Lookback Options
Exotic options are options that have complex features than generally traded vanilla options. They have several trigger...
14
Sep
Barbell Strategy
Barbell Strategy
Options are a conditional derivative instrument that allows the buyer of the contract to buy or sell a security at a c...
07
Aug
Call Option
Call Option
An option is a contract that allows an investor to buy or sell an underlying instrument like a security, ETF, or even an i...
16
Jul
Put Option
PUT OPTION
When an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date, it is known as ...
19
May
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 ...