Related Words

Bargain-Purchase-Price Option: Gives the lessee the option to purchase the asset at a price below fair market value when the lease expires.

Option Not To Deliver: In the mortgage pipeline, an additional hedge placed in tandem with the forward or substitute sale.

Option Offense: An offense heavily relying upon the option run and variations thereof.

Option Premium: When you buy an option, you pay the seller a nonrefundable amount, known as the option premium, for the right to exercise that option before it expires. If you sell an option, you receive a . . . View Full Definition

Option Mutual Fund: A mutual fund that buys and sells options for aggressive or conservative investment.

Option Listing: A listing in which the broker also retains an option to purchase the property for the brokers own account. In view of the body of litigation involving breach of fiduciary duties by brokers w . . . View Full Definition

Option Cycle: The cycle of option expiration months. The most common cycles are: January, April, July, and October (JAJO); February, May, August, and November (FMAN); and March, June, September, and Decem . . . View Full Definition

Option Elasticity: The percentage increase in an option's value, given a 1 percentage point change in the value of the underlying security.

Option Holder: A person who has an option that has not been exercised.

Option Margin: The margin requirement for options described in Regulation T and in brokers' individual policies.