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Payoff

The value of an option at expiration date, i.e., the value which is received by a holder from exercising an...

Position Limit

The maximum number of option contracts that an investor can hold on one side of the market. Accordingly, long calls...

Strike Price

Generally speaking, it is the price at which a derivative contract can be exercised by the holder or the buyer....

Exercise Price

The fixed price at which the underlying asset of an option contract may be bought or sold. For example, the...

Exercise Limit

It usually equals the position limit. However, by definition, it is the maximum number of option contracts that can be...

Exercise Backdating

A fraudulent practice that is usually undertaken by option-holding executives who manipulate the exercise of options to illegally maximize their...