Tag: option

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...

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...

Quanto Swap

What is 'Quanto Swap' A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on...

Volatility

Volatility is the variation in the trading prices over a period of time that is calculated with the help of standard deviation or variation...

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

What is 'Vega' Vega is the measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents...

Vega Neutral

What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the...

Fast Tape

What is 'Fast Tape' A type of futures market that occurs when a single traded price is unavailable because of the rapid...

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