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Automatic Exercise Capped Call Option

A capped call (or specifically an automatic cash-out option) whose payoff is a specific maximum level and which will automatically...

Premium

In the realm of options, it refers to the amount of money an option buyer pays to an option writer...

Passport Option

A call option on any portfolio composed of variable or uncertain components, such as an actively managed portfolio or the...

PNL Option

An option that allows its holder to lock in the profit of optimal trading on a specified asset subject to...

Closing Out an Option

An option contract is a derivative contract that grants its owner the right, without the obligation to buy (for a...

Asian Option

A path-dependent option in which the payoff is based on an average of underlying asset prices, interest rates, indices, or...

Continuous Barrier Option

A barrier option in which in which the payoff is contingent on whether a specific level has been crossed or...

Boston Option

An option in which payment of the premium is deferred until the expiration of the option. A Boston option is...

Transatlantic Barrier Option

An exotic barrier option which has one American-style barrier and one European-style barrier. Conventionally, the American-style barrier is out-of-the-money, while...

Futures-Style Option

Not to be confused with a futures option, it is a futures contract on an option’s payoff. In fact, a...