Option Premium — 1. The income received by an investor who sells or writes an option contract to another party. 2. The current price of any specific option contract that has yet to expire. For stock options, the premium is quoted as a dollar amount per share and… … Investment dictionary
option — op·tion 1 / äp shən/ n 1: the power or right to choose; also: a choice made or available 2: a privilege of demanding fulfillment of a contract on any day within a specified time 3: a contract conveying in exchange for the payment of a premium a… … Law dictionary
Option Chain — A form of quoting options prices through a list of all of the options for a given security. An option chain is simply a listing of all the put and call option strike prices along with their premiums for a given maturity period. The majority of… … Investment dictionary
Down-and-In Option — A form of a knock in option whose payoff is determined by the price of the underlying asset sinking to the barrier price level. If the underlying asset does reach the barrier price level, the down and in option becomes a vanilla European call or… … Investment dictionary
Public health insurance option — The public health insurance option is a proposed government run health insurance agency which competes with other health insurance companies. It is not the same as Publicly funded health care. Called the public insurance option or public option,… … Wikipedia
Public Option Act — Full title To amend title XVIII of the Social Security Act to provide for an option for any citizen or permanent resident of the United States to buy into Medicare. Citations … Wikipedia
Accelerated Option — This term refers to an option in an insurance contract, usually in the form of a rider, that allows for accelerated benefits or partial benefits sooner than they would otherwise be payable. Alternatively, in life insurance contracts, an… … Investment dictionary
Add To Cash Value Option — A common benefit option on life insurance policies wherein the policy owner allows the dividends from policy to be used for the purposes of accumulating cash values. On death, the beneficiaries receive an increased death benefit from the cash… … Investment dictionary
Far Option — The option with the longer time to expiration in a calendar option spread, which involves buying or selling options with different expirations. In such a spread, the shorter dated option will be the near option. Because far options have more time … Investment dictionary
Bermuda Option — A type of exotic option that can be exercised only on predetermined dates, typically every month. Bermuda options are a combination of American and European options. American options are exercisable anytime between the purchase date and the date… … Investment dictionary
Accumulation Option — A policy feature of permanent life insurance that allows policyholders to leave any dividends received with the insurer, where the dividends can earn interest. Accumulation options are the variety of options holders of participating life… … Investment dictionary