A calendar ratio spread which involves buying short-term at-the-money options of the same type (both calls or both puts) and…
A diagonal calendar call spread which is constructed by selling a long-term at-the-money call option and buying a short-term out-of-the-money…
An option on a stock index futures which gives the purchaser the right, without the obligation, to trade the underlying…
It stands for early exercise premium; the difference between the premium (option price) of an American option and that of...
The difference between the premium (option price) of an American option and that of an otherwise identical European option. It...
A commodity that is obtained principally from agricultural or renewable sources, i.e., it is grown, not mined or extracted. Examples…
The act of selling shares of stock short. In other words, it involves the sale of shares not owned by…
A diagonal calendar call spread which is constructed by selling a long-term at-the-money call option and buying a short-term out-of-the-money…
An interest rate swap (IRS) whose maturity doesn’t exceed 2 years. A short-term interest rate swap (STIRS) involves the settlement…
When a call option is exercised, it is said, then, to have been called. For an option on a physical…