cash-based — Referring to an option or future that is settled in cash when exercised or assigned. No physical entity, either stock or commodity, is received or delivered. Bloomberg Financial Dictionary * * * cash based UK US adjective [usually before noun]… … Financial and business terms
Yield-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… … Investment dictionary
Price-Based Option — A derivative financial instrument in which the underlying asset is a debt security. Typically, these options give their holders the right to purchase or sell an underlying debt security (usually a bond) or to receive cash payment based on the… … Investment dictionary
Option-adjusted spread — (OAS) is the flat spread which has to be added to the treasury yield curve in a pricing model (that accounts for embedded options) to discount a security payment to match its market price. OAS is hence model dependent. This concept can be applied … Wikipedia
Option adjusted spread — (OAS) is the flat spread over the treasury yield curve required to discount a security payment to match its market price. This concept can be applied to mortgage backed security (MBS), Options, Bonds and any other interest rate… … Wikipedia
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
Cash balance plan — A cash balance plan is a defined benefit retirement plan that maintains hypothetical individual employee accounts like a defined contribution plan. The hypotheticality of the individual accounts was crucial in the early adoption of such plans… … Wikipedia
cash settlement — Instead of having the actuals delivered, cash is transferred upon settlement. The CENTER ONLINE Futures Glossary The agreement of a buyer and seller to exchange the security and the payment on the same day as the trade. For money market… … Financial and business terms
Option time value — Finance Financial markets Bond market … Wikipedia
Binary option — In finance, a binary option is a type of option where the payoff is either some fixed amount of some asset or nothing at all. The two main types of binary options are the cash or nothing binary option and the asset or nothing binary option. The… … Wikipedia