Option Elasticity When the underlying security’s value changes by 1%, the percentage change witnessed in the value of an option based on this security. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to … [Read more...]
Option Not to Deliver
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Option Not to Deliver Used in mortgage pipelines. A hedge added to an existing substitute sale or forward. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized Portfolio as Listed … [Read more...]
Option Premium
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Option Premium Refer: Option price Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized Portfolio as Listed Securities Option Elasticity Option Not to Deliver Option Premium Option … [Read more...]
Option Price
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Option Price Price paid by buyer of a call or put option to the writer or seller for gaining the right to purchase or sell an underlying asset within a given time frame at a given price. Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption … [Read more...]
Option Pricing Theory
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Option Pricing Theory A model based on a specific theory that helps evaluate the fair value of the option. For example, the Black-Scholes model Random Finance Terms for the Letter O Optimal Portfolio Optional Redemption Provision Optimization Approach to Indexing Optimized … [Read more...]
Option Seller
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Option Seller Refer: Option Writer. Person who sells a call or put option at a given price in an initial transaction. He is obligated to sell or purchase the underlying asset at the price mentioned in the option if it is exercised within the terms outlined. Random Finance … [Read more...]
Option Writer
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Option Writer Refer: Option seller. One who sells call and put options initially. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on Futures Options on Physicals Organized … [Read more...]
Option-Adjusted Spread (OAS)
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Option-Adjusted Spread (OAS) Yield spread between two different fixed income securities with embedded options. For calculations the embedded options are not factored in. Used with derivatives such as MBSs. OAS calculation may differ across models. Generally defined as Yield spread … [Read more...]
Options Contract
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Options Contract Formal agreement giving the holder a right to purchase or sell an asset. These agreements can be bought and sold like other securities at a market determined price. The holder can exercise his right to buy or sell the underlying asset at exercise price quoted in the … [Read more...]
Options Contract Multiple
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Options Contract Multiple Tool to determine dollar value when stock index is the basis of an option. It is denoted as a constant ($100). When this constant is multiplied by cash index value, it gives the stock’s dollar value. Random Finance Terms for the Letter O Option … [Read more...]
Options on Futures
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Options on Futures Contract that gives the owner a right to undertake a predetermined futures contract. When exercised, the option enables the original holder to buy the asset at the price quoted in the futures contract. Random Finance Terms for the Letter O Option … [Read more...]
Options on Physicals
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Options on Physicals Fixed income security based interest rate options. Distinct from options written on futures contract based on interest rates. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract … [Read more...]
Organized Exchange
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Organized Exchange Marketplace where securities are transacted in. Buyers and sellers gather and conduct trades in securities within the guidelines and rules established by the marketplace. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread … [Read more...]
Original Face Value
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Original Face Value On issue date, the principal amount relevant to a mortgage. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on Futures Options on Physicals Organized … [Read more...]
Original Issue Discount Debt (OID Debt)
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Original Issue Discount Debt (OID Debt) When initial offer of a debt issue is done at a below par price the debt is an OID debt. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on … [Read more...]
Origination Fee
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Origination Fee Fee paid to lender for loan application processing. Generally ranges between 0.5% to 1% of the total loan value. Random Finance Terms for the Letter O Option Writer Option-Adjusted Spread (OAS) Options Contract Options Contract Multiple Options on … [Read more...]
Original Margin
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Original Margin Refer: initial security deposit, margin. The amount or margin required to cover a given position when it is entered into. Random Finance Terms for the Letter O Original Margin Original Maturity Origination OTC OTC Options Other Capital Other Current … [Read more...]
Original Maturity
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Original Maturity Date quoted as maturity at the time of issue. Will change with each passing year as maturity date draws closer. Random Finance Terms for the Letter O Original Margin Original Maturity Origination OTC OTC Options Other Capital Other Current … [Read more...]
OTC
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OTC Refer: over-the-counter. Random Finance Terms for the Letter O Original Margin Original Maturity Origination OTC OTC Options Other Capital Other Current Assets Other Long Term Liabilities Other Sources Out-of-the-Money Option … [Read more...]
OTC Options
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OTC Options Options that are traded over-the-counter. Generally the terms of these options are left to the discretion of the two parties involved in the transaction. Random Finance Terms for the Letter O Original Margin Original Maturity Origination OTC OTC Options Other … [Read more...]
