Tag: underlying
Vanilla Option
What is a 'Vanilla Option' A vanilla option is a financial instrument that gives the holder the right, but not the obligation,...
Variable Prepaid Forward Contracts
What is 'Variable Prepaid Forward Contracts' An agreement to give a predetermined number of shares to a brokerage firm, with the stipulation...
Vega
What is 'Vega' Vega is the measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents...
Variance Swap
Definition
A variance swap is an over-the-counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e....
Vega Neutral
What is 'Vega Neutral' A method of managing risk in options trading by establishing a hedge against the implied volatility of the...
Fairway Bond
What is 'Fairway Bond' A type of bond that accrues interest if the embedded index or interest-rate option underlying the bond remains...
Fair Market Value Purchase Option
What is a Fair Market Value Purchase Option
A Fair Market Value Purchase Option is an agreement between a buyer and a seller that gives...
Weak Hands
What is 'Weak Hands' 1. The intention of futures contract holders not to receive delivery of the underlying. 2. Retail traders...
Far Option
What is the Far Option and how can it benefit me
The Far Option is a long-term financial planning strategy that can help you to...
Warrant Premium
What is 'Warrant Premium' The amount that an investor must pay above the current market price for a security, when purchasing and...