Medi Assist Healthcare IPO

Home Derivatives

Finance Wiki

Trending Categories

All Financial Terms Financial Instruments Market Entities Corporate Actions Public Offerings Fixed Income Instruments Currency Commodity Mutual Funds Derivatives Trading Terms Taxes

More

Derivatives Trading Terms Taxes Property Fixed Income Credit Cards Options and Futures Stocks Insurance IPO Technicals Retirement Planning Loans Gold Bank Deposits

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

U

V

W

X

Y

Z

#

Derivatives

Exercise Settlement Amount

Understanding the concept of a stock option can be a bit tricky, so let's break it down. The strike price refers to the predetermined price at which an option can be bought or sold, while the spot price is the current market price. The difference between the two, multiplied by the lot size, determines the value of the contract. This calculation is essential in determining the profitability of a stock option.

Derivative Security

Securities that derive their value from another security are known as underlying securities. This means that their worth is influenced by the features and value of the under...

More

Holder (Option Buyer)

The holder, also known as the owner, of an option contract possesses the privilege to exercise the option within its duration. This privilege is acquired by the holder throu...

More

Options Contracts

This allows investors to speculate on the future price movements of an asset without committing to a purchase. An option contract is a vital financial tool that grants inves...

More

Convergence

It is an essential concept in financial markets. As we dive into the world of finance, it's important to understand the concept of convergence. This term refers to the grad...

More