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 trader or investor who sells a covered or naked option to the effect that the buyer is being delivered…

One of the multiple tools that measure how an option's price and risk are affected by the underlying parameter on...

It equals the number of shares in an option contract (typically 100 shares) multiplied by the exercise price in that…

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

The premium (price) of a call option. It is an amount paid by the call option's buyer (holder) to the...

The portion of an option's value that is almost entirely attributed to the time left to maturity. It equals an...

The absolute change in option price in response to a percentage point change in volatility. Tau is used by traders...

A tool which is used to compare the change in option price to a 1% change in option volatility. Mathematically,...