Option writer: related pages

An option that is part of another security. It does not trade by itself, but it does affect the value of the security of which forms a part.

The option value created by the freedom to act in the future of a choice now.

The price at which a derivative gives the right (or obligation) to buy or sell the underlying security. Also known as the strike price.

The right to buy or sell an asset at a pre-arranged price.

A security is redeemable is the issuer has a right to re-pay the liability it represents and cancel it.

Structured notes are bonds that contain embedded derivatives.

An investor who has sold a security without owning it has a short position in it.