Home > Blossary: Options and Corporate Finance
Option is basically a right that is given to the holder of where he can buy or sell an asset at a predetermined price at a predetermined date. Must be noted that it is just a right and not an obligation.

Category: Education

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Created by: SingleWriter

Number of Blossarys: 3

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Strike price, also referred to as an exercise price is the price that is mentioned in the option contract. This is the price at which an asset is purchased or sold at a future date when the option is ...

Domain: Financial services; Category: Finance

Short straddle strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done ...

Domain: Financial services; Category: Finance

Put option is the right given to the holder of the asset where he can sell a certain quantity of an asset some time in future. This sale has to be made at a price that is predetermined, or decided in ...

Domain: Financial services; Category: Finance

Protective put strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done ...

Domain: Financial services; Category: Finance

An option is considered as in the money when the option holder has the potential to make a loss by exercising it at the exercise price. This will usually be the case when the exercise price of the ...

Domain: Financial services; Category: Finance

Protective put strategy is basically the use of a combination of options to build a complex contract that has the ability to bring down the total risk that is attached to the transaction. It is done ...

Domain: Financial services; Category: Finance

Intrinsic value of the option basically calculates how valuable the option is to the option holder. This value is calculated by figuring out the difference between the exercise price of the option ...

Domain: Financial services; Category: Finance

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