Tag: expiration

What is a 'Knock-Out Option' A knock-out option is an option with a built-in mechanism to expire worthless if a specified price...

DefinitionA binary option is a financial option in which the payoff is either some fixed monetary amount or nothing at all. The two main...

What is a 'Call Price' A call price is the price at which a bond or a preferred stock can be redeemed...

DefinitionA callable bond is a type of bond that allows the issuer of the bond to retain the privilege of redeeming the bond at...

A backspread is a type of options spread in which the trader holds more long positions than short positions. This strategy can be used...

DefinitionIn finance, a calendar spread is a spread trade involving the simultaneous purchase of futures or options expiring on a particular date and the...

What is 'Call On A Call' A type of compound option in which the investor has the right to exercise a call...

What is 'Call Ratio Backspread' A very bullish investment strategy that combines options to create a spread with limited loss potential and...

What is 'Call Risk' The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of...

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