underlying futures contract
61Put — An option granting the right to sell the underlying futures contract. Opposite of a call. The New York Times Financial Glossary * * * ▪ I. put put 1 [pʊt] verb put PTandPP putting PRESPART …
62at-the-money option — An option with a strike price that is equal, or approximately equal, to the current market price of the underlying futures contract. Chicago Board of Trade glossary ( ATM option) The option with the exercise price closest to the current price of… …
63grantor — Someone who assumes the obligation, not the right, to buy (for a put) or sell (for a call) the underlying futures contract or commodity at the strike price. See also writer. The CENTER ONLINE Futures Glossary A person, partnership or corporation… …
64Gamma — Measures the rate of change in the delta of an option. The gamma is highest when the option is at the money. Normal practice sets the gamma to represent the deltas per one point change in the underlying value. An option with a gamma of 0.05,… …
65exercise or strike price — The price at which the buyer of a call can purchase the commodity during the life of the option, and the price at which the buyer of a put can sell the commodity during the life of the option. Chicago Mercantile Exchange Glossary exercise price… …
66strike (price) — The price at which the option buyer may purchase or sell the underlying futures contract upon exercise. See exercise price …
67serial expiration — Options on the same underlying futures contract which expire in more than one month. Exchange Handbook Glossary …
68underlier — underlying or underlier An option or a future is a right or a commitment to buy or sell something at a future date. The underlying is the financial instrument that may or must be bought or sold in each option or futures contract. FAS 133, as… …
69Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …
70Option (finance) — Stock option redirects here. For the employee incentive, see Employee stock option. Financial markets Public market Exchange Securities Bond market Fixed income …
