Basket Options: Packages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designated currencies in exchange for a base currency, either at the prevailing foreign exchange market rate or at a prearranged rate of exchange. Multinational corporations with multicurrency cash flows frequently use basket options because it is generally cheaper to buy an option on a basket of currencies than to buy individual options on each of the currencies that make up the basket.

 

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Basket Options: Packages that involve the exchange of more than two currencies against a base currency at expiration. The basket option buyer purchases the right, but not the obligation, to receive designat . . . View Full Definition

MONEP (Marche Des Options Negociables De Paris): A subsidiary of the Paris Bourse that trades stock and index options.

Options Chain: Options chains are charts showing all the options currently available on a particular underlying instrument. A chain, also called an options string, provides the latest price quotes for all . . . View Full Definition

Options Class: An options class includes all the calls or all the puts on a single underlying instrument that share some of the same terms, such as contract size and exercise style. For example, in the cas . . . View Full Definition