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First Passage Option

An option whose payoff is random at a random time, such as a stock option that pays its intrinsic value...

OTM Call

It stands for out-of-the-money call; a call option with a strike price being above the net amount of its underlying’s...

Out-of-The-Money Call

A call option with a strike price being above the net amount of its underlying’s market price minus the premium,...

Contingent Takedown Option

An option to purchase a fixed-income security which is newly issued and attached to another "on the run" fixed-income security....

Mid-Atlantic Option

An option which can be exercised at different times over its life. This feature makes such an option more flexible...

Cox-Ross-Rubinstein Model

An option pricing model which was developed by John Cox, Stephen Ross, and Mark Rubinstein. It was designed to address...

CPO

It stands for contingent payment option or contingent premium option; an option contract for which no premium is paid upfront by the buyer...

Contingent Payment Option

An option contract for which no premium is paid upfront by the buyer (long). However, a pre-specified premium should be paid if the option...

Contingent Premium Swaption

An option contract which grants the holder the right to buy or sell a swap, conditioned on fixed terms. That...

Contingent Exchange Option

An exchange option whereby one asset is exchanged for another when the former underperforms in relation to the latter by...