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Buy Write

An option position which is created by simultaneously buying an asset and selling a call option on that asset. This...

Embedded Option

An option which is added to another instrument as a right to exercise in relation to that instrument. However, embedded...

Contingent Payout Option

An option in which the holder's payout (payoff) depends, or is contingent, not only on the performance of an equity...

ZEPO

A zero exercise price option which is a cash-settled European call option whose exercise price is zero or very close...

Zero Premium Option

An option combination which provides a payoff virtually without paying or receiving a premium by either the seller or the...

Catastrophe Equity Put Option

A put option (basically a contingent capital arrangement) that gives stock insurers the right to sell shares of their stock...

Double Witching Week

The week that begins on Monday prior to the Saturday expiration of any two classes of option contracts. The week...

Double Digital Option

An option whose payoff at maturity is binary, depending on the spot price of the underlying ending up within a...

Perpetual FRN

A floating rate note (FRN) that that has no redemption date (maturity date), i.e., whose principal never matures. The note...

Perpetual Floating Rate Note

A floating rate note that that has no redemption date (maturity date), i.e., whose principal never matures. The note only...