Tag: underlying

What is a warranty and what does it cover A warranty is a guarantee or promise made by a seller about the quality of their...

What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on...

What is 'Gamma Neutral' A method of managing risk in options trading by establishing an asset portfolio whose delta rate of change...

What is 'Gamma' Gamma is the rate of change in an option's delta per 1-point move in the underlying asset's price. Gamma...

What is a 'Warrant' A warrant is a derivative that confers the right, but not the obligation, to buy or sell a security – normally...

What is an underlying option security An underlying option security is a security that can be used as collateral for options contracts. The most common...

What is an 'Underlying Security' An underlying security is the security on which a derivative derives its value. For example, a call...

What is Umbrella Insurance and what does it cover An Umbrella insurance policy is an insurance policy that provides additional coverage beyond the limits of...

What is an underpayment penalty An underpayment penalty is a fee charged by the IRS for taxpayers who do not pay enough tax throughout the...

What is 'Umbrella Personal Liability Policy' A type of insurance policy that provides excess coverage above and beyond the liability coverage amounts...