Tag: option
Abandonment Value
What is 'Abandonment Value' The value of a project or asset if it were immediately liquidated or sold. The abandonment value of...
Callable Certificate Of Deposit
What is 'Callable Certificate Of Deposit' An FDIC insured certificate of deposit (CD) that contains a call feature similar to other types...
Call
What is a 'Call' A call auction is sometimes referred to a call market; it's a time on an exchange when buyers...
Joint Life With Last Survivor Annuity
What is 'Joint Life With Last Survivor Annuity' An insurance product that, when annuitized, makes payments to the annuitant, the annuitant and...
Lattice-Based Model
What is 'Lattice-Based Model' An option pricing model that involves the construction of a binomial tree to show the different paths that...
Layaway
DefinitionLayaway is an agreement in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay...
Land Lease Option
When it comes to buying a home, there are many different options available to you. One of those options is the land lease option....
Ladder Option
What is 'Ladder Option' An option that locks-in gains once the underlying reaches predetermined price levels or "rungs," guaranteeing some profit even...
Lambda
What is 'Lambda'
The ratio of the percentage change in an option contract's price to the percentage change in the option's underlying price. Lambda is...
Lease Option
DefinitionA lease option is a type of contract used in both residential and commercial real estate. In a lease-option, a property owner and tenant...