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Premium

The premium or agio (from Greek: allag = exchange) for securities (debt securities) such as bonds is the amount by...

EEP

It stands for early exercise premium; the difference between the premium (option price) of an American option and that of...

Early Exercise Premium

The difference between the premium (option price) of an American option and that of an otherwise identical European option. It...

Loss Costs

The actual or expected cost that an insurer would incur as indemnity payments and allocated loss adjustment expenses (or the...

Pure Cost

The actual or expected cost that an insurer would incur as indemnity payments and allocated loss adjustment expenses (or the...

Pure Premium

The actual or expected cost that an insurer would incur as indemnity payments and allocated loss adjustment expenses (or the...

Sell a Spread

An options trading strategy that is based on establishing a spread position in which the premium on the short option…

Net Payoff

In the case of a call option, it is the amount that results from subtracting the strike price and the…

Lookback Feature

With respect to option contracts and other types of derivatives, it refers to the feature allowing the holder (the long)…

Writer

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