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Derivatives

European Options

It allows the holder to buy or sell an underlying asset at a predetermined price on the expiration date. The key difference between a European option and an American option is that the latter can be exercised at any time before expiration, while the former can only be exercised on the expiration date.

As we delve into the world of finance, it's important to understand the nuances of options contracts. Today, we will be discussing the European option, a type of options contract that is limited to its expiration date. This means that the holder has the right to buy or sell an underlying asset at a predetermined price, but only on the expiration date. It's important to note that this differs from the American option, which allows for exercise at any time before expiration. Understanding these distinctions is crucial in navigating the world of financial investments.

Out-of-the-money

An option that would result in a loss upon immediate exercise is known as an out-of-the-money option. Specifically, a Call option is considered out-of-the-money when the cur...

Futures Contracts

This asset can be a commodity, stock, currency, or any other financial instrument. A fundamental concept in finance, Futures Contracts are powerful tools used to manage ris...

Deep Discount Bonds

Deep Discount Bonds, also referred to as zero-coupon bonds, are financial instruments that are acquired at a fixed face value, and the full amount of the investment is paid ...

Expiration Time

This date is determined by the exchange on which the contract is traded. When we talk about expiration time in the context of finance, we are referring to the specific date ...

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date. In the world of finance, t...

This allows them to sell the stock at a higher price, making a profit. On the other hand, a call option gives the holder the right to buy a stock at a stated price within a f...

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Public Offerings

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All terms related to investments like bonds or treasury bills that provide regular, fixed payments,

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All terms & concepts related to financial contracts whose value is based on an underlying asset,

Gold

All terms and concepts related to the precious metal gold, including its price, trading, investment,

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All terms and concepts related to the placement of money in a bank account, including savings accoun

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Trading Terms encompass terminology and phrases commonly used in financial markets, including terms

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Financial Instruments

Legal contracts that represent financial value, such as stocks, bonds, options, futures, and various

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