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Grantor

A trader that sells (writes or issues) an option contract to a market participant, assuming the obligation (i.e., standing ready)...

Option Fair Value

According to the Black-Scholes model, it refers to the premium which makes both the option seller and buyer break even....

Fair Value of Option

According to the Black-Scholes model, it refers to the premium which makes both the option seller and buyer break even....

Combo

An option trading strategy which is established by selling a call option and then buying a put option at a...

Complex Option

An option whose exercise price is possibly a function to a change in a factor other than the price of...

Continuation Option

A non-standard option in which the premium is paid monthly or quarterly over its life. Furthermore, this option gives the...

Condor Spread

A neutral option strategy that aims at making profit from taking positions on stagnant or bound-range stocks. It resembles the...

Convertible Bond Option

An option that gives the holder of a convertible bond for shares of common stock during the life the bond....

Semi-American Option

Another term for a Bermudan option. It is an option that can be exercised on discrete dates before expiration, such...

ERB Option

An acronym for European range bet; an option that is equipped with two European barriers and provides a fixed payoff....