Tag: exercise

DefinitionA call option, often simply labeled a "call", is a financial contract between two parties, the buyer and the seller of this type of...

DefinitionIn finance, a put or put option is a stock market device which gives the owner of a put the right, but not the...

DefinitionValue engineering is a systematic method to improve the "value" of goods or products and services by using an examination of function. Value, as...

What is 'Warrant Premium' The amount that an investor must pay above the current market price for a security, when purchasing and...

What is a warranty and what does it cover A warranty is a guarantee or promise made by a seller about the quality of their...

What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally...

What is an underlying option security An underlying option security is a security that can be used as collateral for options contracts. The most common...

What is 'Lattice-Based Model' An option pricing model that involves the construction of a binomial tree to show the different paths that...

What is 'Early Exercise' The exercise of an option prior to its expiration date. Early exercise is only possible with American-style option...

What is 'Eat Well, Sleep Well' An adage that, referring to the risk/return trade-off, says that the type of security an investor...