Tag: call
Calamity Call
What is 'Calamity Call' A call feature of a Collateralized Mortgage Obligation (CMO) designed primarily to reduce the issuer's reinvestment risk. If...
Call Risk
What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of...
Call Warrant
What is a 'Call Warrant' A call warrant is a financial instrument that gives the holder the right to buy the underlying...
Call Option
DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...
Put Option
DefinitionIn finance, a put or put option is a stock market device which gives the owner of a put the right, but not the...
Parity Bond
What is 'Parity Bond' Two or more bond issues with equal rights to one another. In other words, a parity bond is...
Quantity-Adjusting Option (Quanto Option)
What is 'Quantity-Adjusting Option - Quanto Option' A cash-settled, cross-currency derivative in which the underlying asset is denominated in a currency other...
Variable Ratio Write
What is 'Variable Ratio Write' An option strategy in which an investor holds a long position in the underlying asset and writes...
Vanilla Option
What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...
Vega Neutral
What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the...