It stands for early exercise premium; the difference between the premium (option price) of an American option and that of...

The difference between the premium (option price) of an American option and that of an otherwise identical European option. It...

A warrant that a company writes on its own common stock, giving the buyer/holder the right to sell the company’s…

An options strategy that involves buying a call (long call) and a put (long put) with the same exercise price…

The process of breaking up a convertible bond (CB) into two structured products: an asset swap (credit component) and a…

A straddle whereby an investor simultaneously buys two options (a call and a put) on the same stock, index, interest…

In general, any type of option in which the premium is reduced due to the sale of another option. In...

A trader who has a positive gamma in a position taken in options or option combinations. Such a trader expects...

A trader who has a negative gamma in a position taken in options or option combinations. Such a trader expects...

The degree to which the price of the underlying asset of an option fluctuates. For an out-of-the-money option, it represents...