Ladder Option
Ladder Option is an option that provides for locking in the security gain as soon as the underlying security reaches the predetermined levels of price. Thus it guarantees some amount of profit on the investment even if the price of the underlying security might fall below the determined level before the expiration of the option.
Read more
Tags: expiration of the option, ladder call option, Ladder option
If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!
How Does Fungibility Applied in Options Market?
Any asset, commodity or property which indicates the interchangeability with another similar type of asset or commodity is termed as Fungible. Such fungible assets help in simplifying the trade due to an assumption of everyone valuing goods of same class as same value.
How Does Fungibility Applied in Options Market?
Read more
Tags: commodites, Fungibility, fungible stocks
Fugit
- The time left with investor until the option exercise remains beneficial for the investor.
- Likelihood of the use of American style option before its expiry is termed as fugit.
A Berkeley expert named Mark German used binomial trees and created this concept by studying the optimal period to exercise an American option.
Tags: American option, divedend date, fugit
-
FREE Inner Circle Membership
