Options Trading
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Options Trading
In finance, an option is a contract which conveys to its owner, the ''holder'', the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction. Thus, they are also a form of asset and have a valuation that may depend on a complex relationship between underlying asset price, time until expiration, market volatility, the risk-free rate of interest, and the strike price of the option. Options may be traded between private parties in ''over-the-counter'' (OTC) transactions, or they may be exchange-traded in live, public markets in the form of standardized contracts. Definition and application An option is a contract that allows the holder the right to buy or sell an underlying asset or financial instrument at a specified strike ...
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Finance
Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided into personal, corporate, and public finance. In a financial system, assets are bought, sold, or traded as financial instruments, such as currencies, loans, bonds, shares, stocks, options, futures, etc. Assets can also be banked, invested, and insured to maximize value and minimize loss. In practice, risks are always present in any financial action and entities. A broad range of subfields within finance exist due to its wide scope. Asset, money, risk and investment management aim to maximize value and minimize volatility. Financial analysis is viability, stability, and profitability asse ...
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Thales Of Miletus
Thales of Miletus ( ; grc-gre, Θαλῆς; ) was a Greek mathematician, astronomer, statesman, and pre-Socratic philosopher from Miletus in Ionia, Asia Minor. He was one of the Seven Sages of Greece. Many, most notably Aristotle, regarded him as the first philosopher in the Greek tradition, and he is otherwise historically recognized as the first individual known to have entertained and engaged in scientific philosophy.Frank N. Magill''The Ancient World: Dictionary of World Biography'', Volume 1 Routledge, 2003 He is often referred to as the Father of Science. Thales is recognized for breaking from the use of mythology to explain the world and the universe, instead explaining natural objects and phenomena by offering naturalistic theories and hypotheses. Almost all the other pre-Socratic philosophers followed him in explaining nature as deriving from a unity of everything based on the existence of a single ultimate substance instead of using mythological explanations. Ar ...
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Derivative Products
In finance, a derivative is a contract that ''derives'' its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements ( hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. In the United States, after the financial crisis of 2007–2009, there has been increased pressure to move derivatives to trade on exchanges. Derivatives are one of the thr ...
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Chicago Board Options Exchange
The Chicago Board Options Exchange (CBOE), located at 433 West Van Buren Street in Chicago, is the largest U.S. options exchange with an annual trading volume of around 1.27 billion at the end of 2014. CBOE offers options on over 2,200 companies, 22 stock indices, and 140 exchange-traded funds (ETFs). The Chicago Board of Trade established the Chicago Board Options Exchange in 1973. The first exchange to list standardized, exchange-traded stock options began its first day of trading on April 26, 1973, in celebration of the 125th birthday of the Chicago Board of Trade. The CBOE is regulated by the Securities and Exchange Commission and owned by Cboe Global Markets. Contracts offered Cboe (and other national options exchanges) offers options on the following, and others: Cboe calculates and disseminates the CBOE Volatility Index (VIX), the CBOE S&P 500 BuyWrite Index (BXM), and other indices.Warner, A., ''Options Volatility Trading: Strategies for Profiting from Market Swings'' ( ...
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Mortgage Loan
A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is " secured" on the borrower's property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property ("foreclosure" or " repossession") to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms. The word ''mortgage'' is derived from a Law French term used in Britain in the Middle Ages meaning "death pledge" and refers to the pledge ending (dying) when either the obligation is fulfilled or the property is taken through foreclosure. A mortgage can also be described as "a borrower giving consideration in the form ...
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Convertible Bond
In finance, a convertible bond or convertible note or convertible debt (or a convertible debenture if it has a maturity of greater than 10 years) is a type of bond that the holder can convert into a specified number of shares of common stock in the issuing company or cash of equal value. It is a hybrid security with debt- and equity-like features. It originated in the mid-19th century, and was used by early speculators such as Jacob Little and Daniel Drew to counter market cornering. Convertible bonds are most often issued by companies with a low credit rating and high growth potential. Convertible bonds are also considered debt security because the companies agree to give fixed or floating interest rate as they do in common bonds for the funds of investor. To compensate for having additional value through the option to convert the bond to stock, a convertible bond typically has a coupon rate lower than that of similar, non-convertible debt. The investor receives the potenti ...
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Bond (finance)
In finance, a bond is a type of security under which the issuer ( debtor) owes the holder ( creditor) a debt, and is obliged – depending on the terms – to repay the principal (i.e. amount borrowed) of the bond at the maturity date as well as interest (called the coupon) over a specified amount of time. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in a company (i.e. they are owners), whereas bondholders have a creditor stake in a company (i.e. they are lenders). As creditors, bondholders have priority over stockholders. This means they will be repaid in advance of stockholders, but will rank behind s ...
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Line Of Credit
A line of credit is a credit facility extended by a bank or other financial institution to a government, business or individual customer that enables the customer to draw on the facility when the customer needs funds. A line of credit takes several forms, such as an overdraft limit, demand loan, special purpose, export packing credit, term loan, discounting, purchase of commercial bills, traditional revolving credit card account, etc. It is effectively a source of funds that can readily be tapped at the borrower's discretion. Interest is paid only on money actually withdrawn. Lines of credit can be secured by collateral, or may be unsecured. Lines of credit are often extended by banks, financial institutions and other licensed consumer lenders to creditworthy customers (though certain special-purpose lines of credit may not have creditworthiness requirements) to address fluctuating cash flow needs of the customer. The maximum amount of funds a customer is allowed to draw from ...
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Option (filmmaking)
In the film industry, an option is a contractual agreement pertaining to film rights between a potential film producer (such as a movie studio, a production company, or an individual) and the author of source material, such as a book, play, or screenplay, for an exclusive, but temporary, right to purchase the screenplay, given the film producer lives up to the terms of the contract. Overview The agreement details the exclusive rights, including the specified time period and financial obligations. The producer usually has to advance the essential elements, such as financing and talent, towards the creation of a film based on the work being optioned. Similarly, producers can also option articles, video games, songs, or any other conceivable work of intellectual property. Financially, the contract qualifies as a financial option and may be valued by applying real options analysis. The term is often used as a verb in Hollywood. For example, "Paramount optioned a short story by ...
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Real Estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more generally) buildings or housing in general."Real estate": Oxford English Dictionary online: Retrieved September 18, 2011 In terms of law, ''real'' is in relation to land property and is different from personal property while ''estate'' means the "interest" a person has in that land property. Real estate is different from personal property, which is not permanently attached to the land, such as vehicles, boats, jewelry, furniture, tools and the rolling stock of a farm. In the United States, the transfer, owning, or acquisition of real estate can be through business corporations, individuals, nonprofit corporations, fiduciaries, or any legal entity as seen within the law of each U.S. state. History of real estate The natural right of a person t ...
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Mary II Of England
Mary II (30 April 166228 December 1694) was List of English monarchs, Queen of England, List of Scottish monarchs, Scotland, and Monarchy of Ireland, Ireland, co-reigning with her husband, William III of England, William III & II, from 1689 until her death in 1694. Mary was the eldest daughter of James, Duke of York, and his first wife Anne Hyde. Mary and her sister Anne, Queen of Great Britain, Anne were raised as Anglicans at the behest of their uncle, Charles II of England, King Charles II, although their parents both List of converts to Catholicism, converted to Roman Catholicism. Charles lacked legitimate children, making Mary second in the Succession to the British throne, line of succession. She Cousin marriage, married her first cousin, William of Orange, a Protestantism, Protestant, in 1677. Charles died in 1685 and James took the throne, making Mary heir presumptive. James's attempts at rule by decree and the birth of his son from a second marriage, James Francis Edwar ...
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William III Of England
William III (William Henry; ; 4 November 16508 March 1702), also widely known as William of Orange, was the sovereign Prince of Orange from birth, Stadtholder of County of Holland, Holland, County of Zeeland, Zeeland, Lordship of Utrecht, Utrecht, Guelders, and Lordship of Overijssel, Overijssel in the Dutch Republic from the 1670s, and King of England, Monarchy of Ireland, Ireland, and List of Scottish monarchs, Scotland from 1689 until his death in 1702. As King of Scotland, he is known as William II. He is sometimes informally known as "King Billy" in Ireland and Scotland. His victory at the Battle of the Boyne in 1690 is The Twelfth, commemorated by Unionism in the United Kingdom, Unionists, who display Orange Order, orange colours in his honour. He ruled Britain alongside his wife and cousin, Queen Mary II, and popular histories usually refer to their reign as that of "William and Mary". William was the only child of William II, Prince of Orange, and Mary, Princess Royal an ...
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