Derivatives, Futures & Options
7 terms
Derivatives, Futures & Options
Open Interest
The total number of derivative contracts that remain open and have not been closed or settled.
Derivatives, Futures & OptionsOption
A contract giving its buyer the right, but not the obligation, to buy or sell an underlying at a set price by a set date.
Derivatives, Futures & OptionsOption Chain
A table listing all available strikes for an underlying and expiry, with prices, volumes and open interest for calls and puts.
Derivatives, Futures & OptionsOption Intrinsic Value
The value an option would have if exercised immediately, which is never less than zero.
Derivatives, Futures & OptionsOption Premium
The price paid by an option's buyer to its writer for the rights the contract confers.
Derivatives, Futures & OptionsOption Writer
The party that sells an option and takes on the obligation to perform if the holder exercises.
Derivatives, Futures & OptionsOut of the Money
An option that would have no value if exercised immediately.