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Strike Price

Generally speaking, it is the price at which a derivative contract can be exercised by the holder or the buyer....

Exercise Price

The fixed price at which the underlying asset of an option contract may be bought or sold. For example, the...

Exercise Limit

It usually equals the position limit. However, by definition, it is the maximum number of option contracts that can be...

European Option

An option that can only be exercised on expiration date. An American option, in contrast, may be exercised at any...

Financial Promotion

An effort which is exerted by a bank or financial institution in order to promote business or products. Financial promotions...

Exercise Backdating

A fraudulent practice that is usually undertaken by option-holding executives who manipulate the exercise of options to illegally maximize their...

Dint

A call or put option whereby the holder has the retroactive right to purchase (if a call) or sell (if...

Memoryless Path-Dependent Option

A path-dependent option in which the payoff depends only on one event or piece of information. A good example is...

Flight To Liquidity

A reallocation tactic whereby banks restructure and rebalance their portfolios toward cash reserves and more liquid investments, especially in fixed-income...

Flight To Quality

At an individual bank's level, it refers to a reallocation tactic whereby banks encountering increased market interest rates tend to...