Tag: underlying

Knock-Out Option

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

Yield-Based Option

Yield-Based Option What is 'Yield-Based Option' A type of debt-instrument-based option that derives its value from the difference between the exercise price...

Intrinsic Value

Intrinsic Value In the market of finance, the term intrinsic value can have two distinct meanings: Intrinsic value, is the difference between the...

Implied Repo Rate

DefinitionImplied Repo Rate is the rate of return of borrowing money to buy an asset in the spot market and delivering it in the...

Naked Warrant

Naked Warrant What is 'Naked Warrant' A warrant that is issued without a host bond. A naked warrant allows the holder to...

Naked Put

DefinitionA naked put is a put option where the option writer does not have sufficient liquidity to cover the contracts in case of assignment....

Rainbow Option

DefinitionRainbow option is a derivative exposed to two or more sources of uncertainty, as opposed to a simple option that is exposed to one...

Backwardation

DefinitionNormal backwardation, also sometimes called backwardation, is the market condition wherein the price of a commodities' forward or futures contract is trading below the...

Binary Option

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

Call Price

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

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