Friday, 22 August 2008

Derivatives - C

Call
An option contract giving the holder the right to buy the underlying security at a specified price for a certain, fixed period of time.
Capped-Style Option
Option with an established profit cap. The cap price is equal to the option's strike price plus a cap interval for a call option or the strike price minus a cap interval for a put option. Exercised automatically when the underlying security closes above or below the cap price, depending on whether it is a call or a put.
CEO
Chief Executive Officer
CFO
Chief Financial Officer
Chi-X
Multilateral trading facility developed following MiFid. Majority owned by Instinet Europe
CII
Council of Institutional Investors
CIO
Chief Investment Officer
Close
End of trading session period. Also called the Closing Range. The official close is designated as the high and low prices or bids and offers recorded during the period.
Closing Purchase
Transaction entered into to reduce or eliminate a short position in a given series of options.
Commission
One off fee brokerage fee to a customer when a futures or options on futures position is liquidated either by offset or delivery.
Contract
1) Unit of trading for a financial or commodity future.
2) Bilateral agreement between buyer and seller (parties) of a futures or options on futures transaction. Defined by the exchange.
Contract Month
The month in which futures contracts may be satisfied by making or accepting delivery.
Covered Call Option Writing
Trading strategy involving simultaneously selling call options and owning an equivalent position in the underlying security. The reverse is to sells a put option and shorting the underlying security.

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