Stock Options Definition A stock option is a financial instrument that gives its holder the right but not the obligation to buy or sell a security for a set price on or before a set date. Stock options are traded on financial bonuses. A stock option contract typically consists of no less than 100 options.
Tag: financial instrument
See Also Currency Exchange Rates Hedging Risk Currency Swap Transaction Exposure Exchange Traded Funds Hedge Funds Defined What is a hedge fund? A hedge fund is a private investment portfolio that makes aggressive speculative investments. Because hedge funds often have a very high minimum investment requirement, hedge fund investors are typically only institutional investors and
See Also: Direct Labor Variance Formulas Direct Material Variance Formulas Variance Analysis Financial Instruments Common Stock Definition Covariance Definition The covariance in finance is the degree or amount that two stocks or financial instruments move together or apart from each other. Meaning of Covariance The covariance means that investors have the opportunity to seek out
See Also: Accounts Payable Margin vs Markup Collateralized Debt Obligations Are You Collecting Business Data? Benchmarking A basis point is one hundredth of a percentage point. A single basis point would look like this: 0.01%. Fifty basis points is a half a percentage point: 0.50%. 100 basis points equal one percentage point: 1.00%. When To Use Basis