Option

This Issue in United States

Concept of Option in Futures Trading

In this context of financial law, the following is a definition of Option: A contract that gives the buyer the right, but not the obligation, to buy or sell a specified quantity of a commodity or other instrument at a specific price within a specified period of time, regardless of the market price of that instrument. Also see Put and Call.

Exercise Day

Concept of Exercise Day in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A day on which the buyer (holder) of an option may exercise the right to buy or sell the underlying asset.

Resources

See Also

• Derivatives Contract

Exotic Option

Concept of Exotic Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A non vanilla option.

Resources

See Also

• Derivatives Contract

Theta

Concept of Theta in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A term in option theory measuring the time decay of the option value.

Resources

See Also

• Derivatives Contract

Option

Concept of Option in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The right, but not the obligation, to buy (call) or sell (put) a financial instrument at an agreed upon price during a certain period of time (American), on a specific date (European) or on a number of specific dates in the exercise period (Bermudan).

Resources

See Also

• Derivatives Contract