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European Asian Option

A kind of path-dependent option whose payoff is equal to the difference between the average underlying price during the time...

IV

It stands for intrinsic value; generally, it is the effective monetary advantage which would be obtained when an option is...

Intrinsic Value

Generally, it is the effective monetary advantage which would be obtained when an option is immediately exercised. In call options,...

Symmetric Payoff

A payoff (of a specific derivative instrument) whose value changes continuously and proportionally up or down in response to movements...

Napoleon Option

An OTC-traded financial instrument (option) that allows the holder to take views on the volatility of a market. In its simplest form,...

Non-Linear Payoff

The payoff of a derivative contract that may move proportionally more or less than the price of its underlying. In general, derivatives subdivide into...

Nonlinear Payoff

The payoff of a derivative contract that may move proportionally more or less than the price of its underlying. In general, derivatives subdivide into...

Linear Payoff

The payoff of a derivative contract that moves one-for-one with changes in the underlying price or rate. In general, derivatives subdivide into two common...

Payout

The value of an option at expiration date, i.e., the value which is received by a holder from exercising an...

Payoff

The value of an option at expiration date, i.e., the value which is received by a holder from exercising an...