- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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Date by which a seller must fulfill the obligations of a forward or futures contract.
Industry:Financial services
The written notice given by the seller of its intention to make delivery against an open, short futures position on a particular date. Related: Notice day.
Industry:Financial services
The options available to the seller of an interest rate futures contract, including the quality option, the timing option, and the wild card option. Delivery options mean that the buyer is uncertain of which Treasury bond will be delivered or when it will be delivered.
Industry:Financial services
Locations designated by futures exchanges at which the financial instrument or commodity covered by a futures contract may be delivered in fulfillment of such a contract.
Industry:Financial services
The price fixed by the clearinghouse at which deliveries on futures are invoiced; also the price at which the futures contract is settled when deliveries are made.
Industry:Financial services
A transaction in which the buyer's payment for securities is due at the time of delivery (usually to a bank acting as agent for the buyer) upon receipt of the securities. The payment may be made by bank wire, check, or direct credit to an account.
Industry:Financial services
The ratio of the change in price of a call option to the change in price of the underlying stock. Also called the hedge ratio. Applies to derivative products. Measure of the relationship between an option price and the underlying futures contract or stock price. For a call option, a delta of 0.50 means a half-point rise in premium for every dollar that the stock goes up. As options near expiration, in-the-money call option contracts approach a delta of 1.0, while in the money put options approach a delta of -1. See: hedge ratio, neutral hedge.
Industry:Financial services
A dynamic hedging strategy using options that calls for constant adjustment of the number of options used, as a function of the delta of the option.
Industry:Financial services
Describes value of a portfolio not affected by changes in the value of the asset on which the options are written.
Industry:Financial services
A ratio spread that is established as a neutral position by utilizing the deltas of the options involved. The neutral ratio is determined by dividing the delta of the purchased option by the delta of the written option. See also Ratio Spread and Delta.
Industry:Financial services
