Exchange-Traded Option

Exchange-Traded Option

An option contract that is traded on an exchange. An exchange-traded option is subject to all of the exchange's applicable regulations; this reduces uncertainly for the investor because exchange-traded options are standardized contracts. They contrast with over-the-counter options, the provisions of which may be customized.
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The fund, which is aimed at institutional investors, tracks the DB Option Overwriting Plus Index strategy, which invests 100% in a benchmark index (DJ EuroSTOXX 50, DAX or SMI) and enters into exchange-traded option contracts on the corresponding price return benchmark index.
According to a statement from CBOE, the Vest platform allows advisors to use managed accounts with the desired level of risk for new or existing stock/ETF positions, then structures a "Protective Strategy," using a portfolio of exchange-traded options to match the investor's personalized investment objectives and desired protection as closely as possible.
The Reserve Bank of India (RBI) barred banks from proprietary trading in currency futures and exchange-traded options, it said on its website on Monday.
According to LCM Research, adding exchange-traded options and futures contracts to the latter figure represents no less than seven billion barrels of oil.
The formal organization of options contracts has brought tremendous popularity to the options markets because of the fact that all exchange-traded options contracts are standardized (i.
To address the unique features of ESOs that differentiate them from exchange-traded options (see chart on page 55), AG/E has developed two new valuation models.
The authors use data on exchange-traded options to construct implied lookback straddle returns, and show' that they have considerable power to explain the reported returns of CTAs.
Several important differences distinguish LEPOs from standard exchange-traded options, and these differences have important implications for the pricing of this new security.
Since the embedded call option is not exchange-traded, the call option component of the SIGNs would not be taxed on an annual basis under the mark-to-market rules that apply to exchange-traded options.
Now we plan to go on to provide functionality for exchange-traded options and other OTC derivatives linking up with our sophisticated trade matching capabilities.
In making this decision CPAs should understand that employee share options differ from the usual exchange-traded options most models were developed to value in a number of ways.