option value
111Fair value — Fair value, also called fair price, is a concept used in finance and economics, defined as a rational and unbiased estimate of the potential market price of a good, service, or asset, taking into account such factors as: * relative scarcity *… …
112Reload Option — A type of employee compensation in which additional stock options are granted upon the exercise of the previously granted options. Reload options are features which, rather than pay the employee in cash, upon being exercised, the employee is… …
113put option — An option that gives the option buyer the right but not the obligation to sell ( go short ) the underlying futures contract at the strike price on or before the expiration date. Chicago Board of Trade glossary This security gives investors the… …
114Net present value — In finance, the net present value (NPV) or net present worth (NPW)[1] of a time series of cash flows, both incoming and outgoing, is defined as the sum of the present values (PVs) of the individual cash flows of the same entity. In the case when… …
115Life Option — An annuitization method option for a typical annuity offered by an insurance company with which the annuitant chooses to receive regular income payments from his or her annuity account for life. The insurance company guarantees that the annuitant …
116Lookback Option — An exotic option that allows investors to look back at the underlying prices occurring over the life of the option and then exercise based on the underlying asset s optimal value. This type of option reduces uncertainties associated with the… …
117Yield-Based Option — A type of debt instrument based option that derives its value from the difference between the exercise price and the value of the yield of the underlying debt instrument. Yield based options are settled in cash. A yield based call buyer expects… …
118Out-of-the-money option — A call option is out of the money if the strike price is greater than the market price of the underlying security. A put option is out of the money if the strike price is less than the market price of the underlying security. The New York Times… …
119intrinsic value — The difference between the market value of the underlying in a traded option and the exercise price when the option is in the money . Otherwise the intrinsic value is zero. See also time value …
120AC-DC Option — A derivative that gives an investor the right but not the obligation to buy (call) or sell (put) a security at a certain price (strike), and in which the investor makes the buy or sell decision at a specific time after the option is in force,… …
