Option (finance)
In finance, an option is a contract which gives the buyer (the owner) the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price on or before a spe...
Employee stock option
An employee stock option (ESO) is commonly viewed as a complex call option on the common stock of a company, granted by the company to an employee as part of the employee's remuneration package. Regul...
Incentive stock option
Incentive stock options (ISOs), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit. ISOs are also sometimes referred to as incentive share options...
LEAPS (finance)
In finance, LEAPS (an acronym for Long Term Equity AnticiPation Security) are options of longer term until expiry than other, more common, options. LEAPS are available on approximately 2500 equities...
Warrant (finance)
In finance, a warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date.Warrants and options are similar in that...
Options strategies
Option strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. This is often done to gain exposure to a specif...
Valuation of options
In finance, a price (premium) is paid or received for purchasing or selling options. This price can be split into two components.These are:
The intrinsic value is the difference between the underl...
Option naming convention
In financial markets, an option naming convention is a method of identifying which of many possible options is being quoted or traded.
In North America the usual naming convention is as follows:St...
Real options valuation
Real Options Valuation, also often termed real options analysis, (ROV or ROA) applies option valuation techniques to capital budgeting decisions. A real option itself, is the right — but not the ...
Risk-neutral measure
In mathematical finance, a risk-neutral measure, (also called an equilibrium measure, or equivalent martingale measure), is a probability measure such that each share price is exactly equal to the dis...
Jade Lizard option strategy

In options trading, a jade lizard is a custom option strategy which consists of a bear vertical spread created using call options, with the addition of a put option sold at a strike price lower t...
Phantom stock
Phantom stock is a contractual agreement between a corporation and recipients of phantom shares that bestow upon the grantee the right to a cash payment at a designated time or in association with a d...
SABR volatility model
In mathematical finance, the SABR model is a stochastic volatility model, which attempts to capture the volatility smile in derivatives markets. The name stands for "stochastic alpha, beta, rho", ref...
Foreign-exchange option
In finance, a foreign-exchange option (commonly shortened to just FX option or currency option) is a derivative financial instrument that gives the right but not the obligation to exchange money denom...
Black's approximation
In finance, Black's approximation is an approximate method for computing the value of an American call option on a stock paying a single dividend. It was described by Fischer Black in 1975.
The Bl...
Black's approximation - Wikipedia