Derivatives, Futures & Options
4 terms
Derivatives, Futures & Options
Physical Settlement
Settlement of a derivative by actual delivery of the underlying security against payment, rather than by cash difference.
Derivatives, Futures & OptionsProtective Put
Buying a put against shares already owned, to place a floor under the holding's value.
Derivatives, Futures & OptionsPut Option
An option giving its buyer the right to sell the underlying at the strike price on or before expiry.
Derivatives, Futures & OptionsPut-Call Parity
The relationship fixing the price of a European call and put with the same strike and expiry relative to the underlying.