Alligator Spread
What Does Alligator Spread Mean?
Alligator spread refers to a non profitable spread in situations of encouraging market trend. Such a loss making situation is a resultant of high commission charges on the transactions.
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Tags: Alligator Spread, high commission charges on transactions
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Aggregate Exercise Price
What Does Aggregate Exercise Price Mean?
Aggregate Exercise Price refers to the total price which comes when the contract size is multiplied by the option strike price. This aggregate price is used for determining the dollar amount that is required in case the option (Put or Call) is to be exercised.
Tags: Aggregate Exercise Price, strike price
Asian Option
What Does Asian Option Mean?
Asian option is alternately named as average option. It is an option where average rate of the underlying security for certain specific period forms the base of the payoff determined as against the maturity value.
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Tags: American option, Asian Option
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