An area yield options contract is a
contract
A contract is an agreement that specifies certain legally enforceable rights and obligations pertaining to two or more parties. A contract typically involves consent to transfer of goods, services, money, or promise to transfer any of thos ...
entitling the
holder to receive a payment when the
area yield is below the
put or above the
call option
In finance, a call option, often simply labeled a "call", is a contract between the buyer and the seller of the call Option (finance), option to exchange a Security (finance), security at a set price. The buyer of the call option has the righ ...
strike
Strike may refer to:
People
*Strike (surname)
* Hobart Huson, author of several drug related books
Physical confrontation or removal
*Strike (attack), attack with an inanimate object or a part of the human body intended to cause harm
* Airstrike, ...
yield. The strike yield is the
yield at which the holder of an option contract can
exercise the option.
See also
*
Binary option
*
Bond option
In finance, a bond option is an option to buy or sell a bond at a certain price on or before the option expiry date. These instruments are typically traded OTC.
*A European bond option is an option to buy or sell a bond at a certain date in fu ...
*
CBOE S&P 500 PutWrite Index
The CBOE S&P 500 PutWrite Index (ticker symbol PUT) is a benchmark index that measures the performance of a hypothetical portfolio that sells S&P 500 Index (SPX) put options against collateralized cash reserves held in a money market account.
Des ...
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Covered call
*
Credit default option
*
Exotic interest rate option
*
Foreign exchange option
*
Interest rate cap and floor
*
Married put
*
Moneyness
In finance, moneyness is the relative position of the current price (or future price) of an underlying asset (e.g., a stock) with respect to the strike price of a derivative, most commonly a call option or a put option. Moneyness is firstly a th ...
*
Naked call
*
Naked put
*
Option time value
In finance, the time value (TV) (''extrinsic'' or ''instrumental'' value) of an option (finance), option is the premium a rational investor would pay over its ''current'' exercise value (intrinsic value (finance), intrinsic value), based on the pro ...
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Options on futures
In finance, a futures contract (sometimes called futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item tr ...
*
Pre-emption right
A pre-emption right, right of pre-emption, or first option to buy is a contractual right to acquire certain property newly coming into existence before it can be offered to any other person or entity. It comes from the Latin verb ''emo, emere, emi, ...
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Put–call parity
In financial mathematics, the put–call parity defines a relationship between the price of a European call option and European put option, both with the identical strike price and expiry, namely that a portfolio of a long call option and a shor ...
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Real option
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Right of first refusal
Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transactio ...
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Stock option
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 ...
*
Swaption
A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. Although options can be traded on a variety of swaps, the term "swaption" typically refers to options on interest rate swaps.
Types
T ...
References
Contract law
Derivatives (finance)
Fixed income analysis
Options (finance)
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