• (1) An option contract giving the owner the right to buy a specified amount of an underlying security at a specified price within a specified time. (2) The act of exercising a call option. See also: Put.
• An option that gives the right to buy the underlying futures contract.
• An option that gives the holder the right to buy the underlying security at a specified price during a fixed time period.
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| ||Advanced refunding: Is the technique of replacing one bond issue by another. This typiCally occurs when a municipality can borrow at more favorable terms than the outstanding issue. The new issue's proceeds are used to purchase government obligations which are held in escrow. The income and/or appreciation of these government securities is then used to service the outstanding debt. The escrow may be held until the first call date or maturity of the initial bond issue. If the escrowed funds retire the original issue at the first call date then the issue is pre-refunded. This retirement and replacement process of debt is also known as defeasance.|
| ||American option: An option that may be exercised at any time up to and including the expiration date. Related: European optionAn option that may be exercised at any time during the life of the option. Stock options that trade in U.S. option exchanges, such as the CBOE, are of American types. Index options are of either American (option on S&P100 index, Called OEX) or European types (option on S&P500 index, called SPX). See call and put options.|
| ||Amortize: In portfolio accounting, periodic charges made against interest income on premium bonds in anticipation of receipt of the Call price at call or of par value at maturity. In the context of a loan, amortization means the annuity payments that pay off the loan in full.|
| ||Assignment: The receipt of an exercise notice by an options writer that requires the writer to sell (in the case of a Call) or purchase (in the case of a put) the underlying security at the specified strike price.Is the action for the seller of the option of acquiring the opposite position when an option is exercised. When a put is exercised, the writer receives a long position in securities or a long futures contract. When a Call is exercised, the writer receives a short position in the securities or a short futures contract.A voluntary liquidation procedure by which a firm's creditors pass the power to liquidate the firm's assets to an adjustment bureau, a trade association, or a third party, which is designated the assignee.|
| ||Bane: In the words of Warren Buffet, Bill Bane Sr., is, a great American and one of the last real traders around. I like to Call him 'Salvo.' His wife, Carol, is a huge NASCAR fan, and in her own words delights in pulling the legs off central bankers. Cooper Bane, son number two, is a thriving artiste who specializes in making art that is much better than the stuff most folks are doing. Jackson, son number three, is a world renowned master chef and plans on opening a restaurant. Bill Bane Jr., son number one, plans on giving Mr. Monroe Trout a run for his money. [Bill Bane, Jr. helped Professor Harvey put the hypertextual glossary together while an MBA student at Duke University.]|
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