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Options contract |
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Definition of Options contractOptions contractA contract that, in exchange for the option price, gives the option buyer the right, but not
Related Terms:Options contract multipleA constant, set at $100, which when multiplied by the cash index value gives the Counterparty riskThe risk that the other party to an agreement will default. In an options contract, the risk Exercise priceThe price at which the underlying future or options contract may be bought or sold. Last trading dayThe final day under an exchange's rules during which trading may take place in a particular Option priceAlso called the option premium, the price paid by the buyer of the options contract for the right Spread1) The gap between bid and ask prices of a stock or other security. Barrier optionscontracts with trigger points that, when crossed, automatically generate buying or selling of Basket optionsPackages that involve the exchange of more than two currencies against a base currency at Bullet contractA guaranteed investment contract purchased with a single (one-shot) premium. Related: Cash settlement contractsFutures contracts, such as stock index futures, that settle for cash, not involving Conditional sales contractsSimilar to equipment trust certificates except that the lender is either the ContractA term of reference describing a unit of trading for a financial or commodity future. Also, the actual Contract monthThe month in which futures contracts may be satisfied by making or accepting a delivery. Dealer optionsOver-the-counter options, such as those offered by government and mortgage-backed Delivery optionsThe options available to the seller of an interest rate futures contract, including the quality Equity optionsSecurities that give the holder the right to buy or sell a specified number of shares of stock, at Floating-rate contractA guaranteed investment contract where the credit rating is tied to some variable Forward contractA cash market transaction in which delivery of the commodity is deferred until after the Forward forward contractIn Eurocurrencies, a contract under which a deposit of fixed maturity is agreed to Futures contractAgreement to buy or sell a set number of shares of a specific stock in a designated future Futures contract multipleA constant, set by an exchange, which when multiplied by the futures price gives Guaranteed insurance contractA contract promising a stated nominal interest rate over some specific time Guaranteed investment contract (GIC)A pure investment product in which a life company agrees, for a Hell-or-high-water contractA contract that obligates a purchaser of a project's output to make cash Margin requirement (Options)The amount of cash an uncovered (naked) option writer is required to Most distant futures contractWhen several futures contracts are considered, the contract settling last. Nearby futures contractWhen several futures contracts are considered, the contract with the closest Next futures contractThe contract settling immediately after the nearby futures contract. Nexus (of contracts)A set or collection of something. Open contractscontracts which have been bought or sold without the transaction having been completed by Optimal contractThe contract that balances the three types of agency costs (contracting, monitoring, and Options on physicalsInterest rate options written on fixed-income securities, as opposed to those written on Set of contracts perspectiveView of corporation as a set of contracting relationships, among individuals Take-or-pay contractA contract that obligates the purchaser to take any product that is offered to it (and pay Turnkey construction contractA type of construction contract under which the construction firm is Window contractA guaranteed investment contract purchased with deposits over some future designated cafeteria plan a “menu” of fringe benefit options that includecash or nontaxable benefits contract manufactureran external party that has been granted an outsourcing contract to produce a part or component for an entity contract vendoran external party that has been granted an cost-plus contracta contract in which the customer agrees forward contractAgreement to buy or sell an asset in the future at an agreed price. futures contractExchange-traded promise to buy or sell an asset in the future at a prespecified price. real optionsoptions embedded in real assets. Futures ContractA contract in which the seller agrees to provide something to a buyer at a specified future date at an agreed price. Implicit ContractAn unwritten understanding between two groups, such as an understanding between an employer and employees that employees will receive a stable wage despite business cycle activity. Contract Work Hours and Safety Standards ActA federal Act requiring federal contractors to pay overtime for hours worked exceeding 40 per week. McNamara-O'Hara Service Contract Act of 1965A federal Act requiring federal contractors to pay those employees working on a federal contract at Walsh-Healey Public Contracts Act of 1936A federal Act that forces government contractors to comply with the government’s minimum wage and hour rules. Completed-Contract MethodA contract accounting method that recognizes contract revenue Contract AccountingMethod of accounting for sales or service agreements where completion ContractA formal written statement of the rights and obligations of each party to a transaction. Exit OptionsA variety of options available to an investor to recover their invested capital and the return on their investment. American-style optionAn option contract that can be exercised at any time between the date of purchase and CBOEChicago Board options Exchange. A securities exchange created in the early 1970s for the public Derivative instrumentscontracts such as options and futures whose price is derived from the price of the Expiration cycleAn expiration cycle relates to the dates on which options on a particular security expire. A Futures optionAn option on a futures contract. Related: options on physicals. HedgingA strategy designed to reduce investment risk using call options, put options, short selling, or futures Long positionAn options position where a person has executed one or more option trades where the net Seriesoptions: All option contracts of the same class that also have the same unit of trade, expiration date, Underlying securityoptions: the security subject to being purchased or sold upon exercise of an option Unmatched bookIf the average maturity of a bank's liabilities is less than that of its assets, it is said to be Virtual currency optionA new option contract introduced by the PHLX in 1994 that is settled in US$ rather diluted earnings per share (EPS)This measure of earnings per share Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |