Derivatives, Futures & Options
5 terms
Derivatives, Futures & Options
Implied Volatility
The volatility figure that, put into an option pricing model, reproduces the option's current market price.
Derivatives, Futures & OptionsIn the Money
An option that would have positive value if exercised immediately.
Derivatives, Futures & OptionsIndex Futures
A futures contract whose underlying is a stock market index rather than a single security.
Derivatives, Futures & OptionsInitial Margin
The deposit required before a derivative position can be opened, held as collateral against potential losses.
Derivatives, Futures & OptionsIron Condor
A four-leg position writing an out-of-the-money call and put while buying further out-of-the-money protection on both sides.