Definition of Spread option in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Spread option? Meaning of Spread option as a finance term. What does Spread option mean in finance?
A spread option is a type of option contract that derives its value from the difference, orspread, between the prices of two or more assets. Spread options differ from various option spread strategies constructed with multiple contracts on different strike prices or differing expirations. Other tha...
Definition of Call an option in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is Call an option? Meaning of Call an option as a finance term. What does Call an option mean in finance?
For example, in abull call spread, the investor buys call options with one strike price while also selling the same number of calls of the same asset and expiration date but at a higher strike. Because the second call is farther from the current price of theunderlying, its price is lower...
Define Option contract. Option contract synonyms, Option contract pronunciation, Option contract translation, English dictionary definition of Option contract. n. 1. The act of choosing; choice: Her option was to quit school and start her own business. 2
Put Option Definition Top 10 Option Trading Tips Call Option Definition: ACall Optionis security that gives the owner the right tobuy100 shares of a stock or an index at a certain price by a certain date. That "certain price" is called thestrike price, and that "certain date" is called...
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date.
Long Call Ladder Spread - DefinitionAn options strategy consisting of writing an additional higher strike price call option on a bull call spread in order to further reduce capital outlay. Long Call Ladder Spread - IntroductionThe Long Call Ladder Spread, also known as the Bull Call Ladder ...
Definition of Option (disambiguation) in the Legal Dictionary - by Free online English dictionary and encyclopedia. What is Option (disambiguation)? Meaning of Option (disambiguation) as a legal term. What does Option (disambiguation) mean in law?
Definition of Option-adjusted spread (OAS) Option-adjusted spread (OAS) 1) The spread over an issuer's spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market price. 2) The cost of the implied call ...