Advertising

Option models

• Are evaluation tools to determine the price, the premium, or the volatility for a put, call, or complex position or strategy. Sometimes, the list for option models includes: convertible securities, mortgage and asset backed securities, and warrants. Option models may be categorized as credit, currency, equity, index, futures, and physical or cash oriented. The basic factors for an option model are: the underlying market price, the strike or exercise price, the interest rate for discounting purposes, the volatility, and the time to expiration. Some models require expected dividends, coupons and foreign exchange considerations. Some of these models are: Binomial, Black, Black Scholes, Cox, Ingersoll, and Ross (CIR), Gastineau-Madansky, Heath, Jarrow, and Morton (HJM), Ho and Lee, Hull and White, Jamshidian, Rendleman and Bartter, Vasicek, and Whaley. Often these models have modifications. Usually, the modifications are at the practices level in order to expedite calculations.

 
 

Follow this link for all the terms related to modeloption.

 
 Embedded terms in definition
 Asset backed securities
Asset
Call
Cash
Convertible
Credit
Currency
Discounting
Dividends
Equity
Exchange
Exercise price
Exercise
Expiration
Foreign exchange
Foreign
Futures
Index
Interest rate
Interest
Market
Mortgage
Option
Order
Position
Premium
Securities
Time
Underlying market price
Underlying
Volatility
 
 Related Terms
 
Abandonment option
American option
American style option
Annuity form or option
Arbitrage free option pricing models
Asian option
Bankruptcy prediction models
Bargain purchase price option
Binary option
Binomial option pricing model
Black option model
Black scholes option model
Black scholes option pricing model
Butterfly option spread
Call an option
Call option
Compound option
Country risk analysis models
Covered or hedge option strategies
Credit scoring models
Currency option
Delta hedge of an option
Delta of an option
Deterministic models
Doubling option
Down and in option
Down and out option
Elasticity of an option
Embedded option
European option
European style option
Exercise or option price
Exercising the option
Explicit option
Extrapolative statistical models
Foreign currency option
Futures option
Gamma of an option
Garmen kohlhagen option pricing model
Greenshoe option
Ho lee option model
Implicit option
In the money option
Index and option market
Index option
Intrinsic value of an option
Irrational call option
Liquid yield option note
Lookback option
Multi option financing facility
Naked option
Naked option position
Naked option strategies
Option
Option adjusted duration
Option adjusted spread
Option adjusted spread model
Option elasticity
Option not to deliver
Option premium
Option price
Option seller
Option trading strategies
Option type
Option writer
Out of the money option
Path dependent option
Postponement option
Prepayment option
Put an option
Put option
Quality option
Rho of an option
Seller's option
Short option minimum charge
Split fee option
Stochastic models
Stock index option
Stock option
Swap option
Tax deferral option
Tax timing option
Time value of an option
Timing option
Two state option pricing model
Virtual currency option
Wild card option
Yield curve option pricing models
Yield to call, option or event date

<< Option elasticity Option not to deliver >>

Teaching Children the Financial Facts of Life: Showing the importance of saving, spending wisely and sharing with others More...

All the adversity I've had in my life, all my troubles and obstacles, have strengthened me. . . . You may not realize it when it happens, but a kick in the teeth may be the best thing in the world for you. - Walt(er) Elias Disney

Advertising



Copyright 2009-2018 GVC. All rights reserved.