Derivatives, Futures & Options
8 terms
Short Call
A position created by writing a call option, receiving the premium and taking on an obligation to deliver if exercised.
Derivatives, Futures & OptionsShort Put
A position created by writing a put option, receiving the premium and taking on an obligation to buy if exercised.
Derivatives, Futures & OptionsSPAN Margin
The portion of initial margin computed by simulating a portfolio's worst-case loss across a grid of price and volatility scenarios.
Derivatives, Futures & OptionsStock Futures
A futures contract whose underlying is a single listed company's shares.
Derivatives, Futures & OptionsStraddle
Buying or writing both a call and a put at the same strike and expiry.
Derivatives, Futures & OptionsStrangle
Buying or writing a call and a put at different out-of-the-money strikes with the same expiry.
Derivatives, Futures & OptionsStrike Price
The fixed price at which an option's holder may buy or sell the underlying if the option is exercised.
Derivatives, Futures & OptionsSynthetic Position
A combination of options and the underlying that reproduces the payoff of a different single instrument.