A risk reversal that allows investors to avoid paying a premium for an option. In this option strategy, the premium...
It stands for near the money; the state in which options or option positions, whose market prices are very near...
The state in which options or option positions, whose market prices are very near to their strike prices, are the...
A process of replacing a contract or a series of contracts with a new one(s), whereas a third party takes...
The value of an option at expiration date, i.e., the value which is received by a holder from exercising an...
The value of an option at expiration date, i.e., the value which is received by a holder from exercising an...
An energy derivative which is traded on crude oil (petroleum) and petroleum derivatives (by-products). This includes contracts on crude oil,...
A practice whereby an intermediary enters into one side of the swap transaction, such as fixed rate payer (or floating...
The maximum number of option contracts that an investor can hold on one side of the market. Accordingly, long calls...
Generally speaking, it is the price at which a derivative contract can be exercised by the holder or the buyer....