The flexibility of these options is attractive to many. With OTC options, both hedgers and speculators can benefit from avoiding the restrictions that normal standardized exchanges place on options. The flexibility allows participants to achieve their desired position more precisely and cost effectively.
Investment dictionary. Academic. 2012.
Options Clearing Corporation — Industry clearing Founded 1973 Headquarters Chicago, IL … Wikipedia
options contract — A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option seller within a specified time period, or on a specified … Financial and business terms
traded options — options which are traded on an exchange with standardised features. Contrast with over the counter ( OTC) options, which are tailor made for each investor s requirements. Dresdner Kleinwort Wasserstein financial glossary Transferable options with … Financial and business terms
Chicago Board Options Exchange — ( CBOE) A securities exchange created in the early 1970s for the public trading of standardized option contracts. Primary place for the trading of stock options, foreign currency options, and index options ( S&P 100, S&P 500, and OTC 250 index … Financial and business terms
Mountain Range Options — A family of exotic options based on multiple underlying securities. Mountain range options were first created by French securities firm Société Générale in the late 1990s. These options blend some of the key characteristics of … Investment dictionary
Option (finance) — Stock option redirects here. For the employee incentive, see Employee stock option. Financial markets Public market Exchange Securities Bond market Fixed income … Wikipedia
Victor Sperandeo — Victor Sperandeo, known as Trader Vic, is a professional wall street stock trader, speculator and investment advisor. He has written two books on speculation, and co written a novel about finance.Sperandeo uses a combination of fundamental and… … Wikipedia
Black-Scholes Model — A widely used option pricing equation developed in 1973 by Fischer Black en Myron Scholes. Used to price OTC options, value option portfolios, or evaluate option trading on exchanges … International financial encyclopaedia
Derivative (finance) — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia
Over-the-counter (finance) — Within the derivatives markets, many products are traded through exchanges. An exchange has the benefit of facilitating liquidity and also mitigates all credit risk concerning the default of a member of the exchange. Products traded on the… … Wikipedia
