FT MarketWatch
Simply type in the name of the company whos symbol you wish to lookup and submit.
Search Investors Edge:    

Option price

The amount per 

Share

 that an 

Option

 buyer pays to the seller. The 

Option

 premium is primarily affected by the difference between the stock price and the strike price, the time remaining for the 

Option

 to be exercised, and the 

Volatility

 of the underlying stock. Affecting the premium to a lesser degree are factors such as 

Interest

 rates, 

Market

 conditions, and the 

Dividend rate

 of the underlying stock. Because the value of an 

Option

 decreases as its 

Expiration date

 approaches and becomes worthless after that date, options are called wasting 

Asset

. The total value of an 

Option

 consists of 

Intrinsic value

, which is simply how far in-the-money an 

Option

 is, and time value, which is the difference between the price 

Paid

 and the intrinsic value. Understandably, time value approaches zero as the 

Expiration date

 nears. also called 

Option

 premium.



Related Terms: 23

Asset

,

ACH

,

Buy

,

Call

,

Dividend rate

,

Exercise

,

Expiration date

,

Factor

,

Intrinsic value

,

Interest

,

Interest rate

,

ITS

,

Money

,

Market

,

Option

,

Option premium

,

Paid

,

Ratio

,

Sell

,

Share

,

SIC

,

TRIN

,

Volatility


Other Related Pages:

Category: Options


Starting With: O


Semi Related Terms: 1001  CLICK HERE TO VIEW

10-K

,

19c3 stock

,

Active asset

,

Allowance for depreciation

,

Alternative assets

,

Asset

,

Asset/equity ratio

,

Available assets

,

ACH

,

Adjustable rate

,

Asset management account

,

Accreted value

,

Accrual of discount

,

Accrued interest

,

Accrued market discount

,

After-tax basis

,

American Stock Exchange

,

Amortization of premium

,

Amortized value

,

Asked price

,

Asking price

,

Asset-backed security

,

Asset swap

,

At par

,

All or any part

,

At best

,

At call

,

Active money

,

Accrued dividend

,

Accumulated dividend

,

Adjustable rate preferred stock

,

Adjusted futures price

,

American Depositary Share

,

All-risks coverage

,

At risk

,

Asset acquisition

,

Asset class

,

Asset financing

,

Add-on service

,

Abstract of title

,

Action to quiet title

,

As is

,

Assignment to creditors

,

Attorney in fact

,

Adjustable Rate Mortgage

,

Adjustment date

,

Advance rate

,

After acquired clause

,

After-acquired collateral

,

Annual Percentage Rate

,

Applicable federal rate

,

Asset-based finance

,

Asset-based lending

,

Asset conversion loan

,

Assignment of mortgage

,

A shares

,

Asset allocation fund

,

Assets under management

,

Asset turnover

,

Average price per share

,

Aggregate exercise price

,

American option

,

American-style option

,

Asian option

,

At the money

,

Automatic exercise

,

Average option

,

Absorption rate

,

After-tax contributions

,

Annuity factor method

,

Across the board

,

Additional paid-in capital

,

After-tax

,

Amount recognized

,

Assessed value

,

Active market

,

After-hours trading

,

Against the box

,

At the bell

,

At the close

,

At the figure

,

At the full

,

At the market

,

At the opening order

,

Auction market

,

Automated Pricing and Reporting System

,

Away from the market

,

Back pay

,

Below the line

,

Books of final entry

,

Books of original entry

,

Book value per share

,

Burn rate

,

Banking Act of 1933

,

Barren money

,

Benchmark interest rate

,

Bid-to-cover ratio

,

Bond Buyer

,

Bond market

,

Bureau of Public Debt

,

Buy

,

Brought over the wall

,

Buying on margin

,

Buy limit order

,

Buy minus

,

Buy minus order

,

Buy on close

,

Buy on opening

,

Buy order

,

Buy stop order

,

Buy the book

,

Broad money

,

Basic earnings per share

,

Balance of payments

,

Bank Rate

,

Base interest rate

,

Bear market

,

Board of Governors

,

Bulldog market

,

Breaking the syndicate

,

Bill of exchange

,

Bill of sale

,

Breach of trust

,

By the book

,

Base rate

,

Blended rate

,

Broker loan rate

,

Breakup value

,

Back-end load

,

B shares

,

Buy and write

,

Bearer share

,

Bonus share

,

Borrowed stock

,

Buy-side

,

Break-even tax rate

,

Breadth-of-market theory

,

Beat the gun

,

Bull market

,

Capital asset

,

Capitalized interest

,

Cash asset ratio

,

Cash ratio

,

Collection ratio

,

Cost Of Goods Sold

,

Cost of sales

,

Central assets account

,

Cleared date

,

Compound interest

,

Call

,

Call date

,

Called away

,

Called bond

,

Call price

,

Call protection

,

Call risk

,

Capital market

,

Certificate of Participation

,

Committee on Uniform Securities Identification Procedures

,

Common stock equivalent

,

Conversion option

,

Conversion parity price

,

Conversion premium

,

Conversion price

,

Conversion ratio

,

Conversion value

,

Coupon rate

,

Current market value

,

Current production rate

,

Call money rate

,

Code of procedure

,

Cash dividend

,

Cumulative dividend

,

Capitalization of income

,

Capitalization rate

,

Cap rate

,

Civilian unemployment rate

,

Consumer Price Index

,

Cost of Living Adjustment

,

Cost-of-living index

,

Council of Economic Advisers

,

Cyclical stock

,

Cash and carry trade

,

Cash market

,

Cash price

,

Certificated stock

,

Chasing the market

,

Cheapest to deliver

,

Chicago Board of Trade

,

Commodities Exchange Act

,

Contract market

,

Cash surrender value

,

Cash value

,

Cash value life insurance policy

,

Cost-of-living rider

,

Callable stock

,

Certificate of stock

,

Chicago Board Options Exchange

,

Consumer stock

,

Control stock

,

Cost of carry

,

Certificate of title

,

Contract for deed

,

Cancellation of debt

,

Certificate of Claim

,

Closed-end credit

,

Consumer interest

,

Cost of debt capital

,

Cost of funds

,

Closed-end fund

,

Closed-end investment company

,

C shares

,

Call option

,

Call ratio backspread

,

Call swaption

,

Cashless exercise

,

Class of options

,

Close to the money

,

Covered call

,

Covered option

,

Certificate of Occupancy

,

Closing date

,

Cloud on title

,

Cash or Deferred Arrangement

,

Capital Asset Pricing Model

,

Choice market

,

Class A Shares

,

Class B Shares

,

Crash of 1929

,

Crash of 1987

,

Child and dependent care credit

,

Coefficient of determination

,

Cup and handle

,

Certificate of delivery

,

Close a position

,

Close market

,

Closing price

,

Continuous market

,

Cornering the market

,

Curbs in

,

Deficit net worth

,

Date draft

,

Deposit in transit

,

Date of issue

,

Date of payment

,

Dealer market

,

Debt market

,

Deferred interest bond

,

Distribution date

,

Dollar price

,

Due date

,

Division of Enforcement

,

Division of Investment Management

,

Division of Market Regulation

,

Date of record

,

Dividend clawback

,

Dividend clientele

,

Dividend discount model

,

Dividend in arrears

,

Dividend payout ratio

,

Dividend rate

,

Dividend Reinvestment Plan

,

Dividend requirement

,

Dividend rollover plan

,

Desk (the)

,

Discount rate

,

Division of labor

,

Delivery price

,

Deal stock

,

Defensive stock

,

Distribution stock

,

Donated stock

,

Dated date

,

Directed share program

,

De-escalation clause

,

De facto

,

Doing business as

,

Durable Power of Attorney

,

Date of maturity

,

Debtor in possession

,

Debtor-in-possession financing

,

Deed of Release

,

Deed of Trust

,

Discharge of bankruptcy

,

Discharge of lien

,

Due-on-sale clause

,

Deep in the money

,

Deep out of the money

,

Deed of Surrender

,

Department of Housing and Urban Development

,

Dirty stock

,

Dogs of the Dow

,

Dow dividend theory

,

Deep market

,

Depth of market

,

Double auction market

,

Earning asset

,

Economic value

,

Efficiency ratio

,

Effective annual interest rate

,

Eurodollar certificate of deposit

,

Exact interest

,

Embedded option

,

Equity risk premium

,

Escrowed to maturity

,

Ex-legal

,

External market

,

Either-or order

,

Exchange rate

,

Extended broad money

,

Economic growth rate

,

Edge Act

,

E-mini

,

Exchange for futures

,

Exchange for physical

,

Exchange of spot

,

Ex-pit transaction

,

Emerging market

,

Effective date

,

Effective tax rate

,

Employee Stock Purchase Plan

,

Employee stock repurchase agreement

,

Equity option

,

Ex-all

,

Exchange ratio

,

Explicit interest

,

Early exercise

,

European-style option

,

Exchange-traded option

,

Exercise

,

Exercise assignment

,

Exercise limit

,

Exercise notice

,

Exercise ratio

,

Expiration cycle

,

Expiration date

,

Expiration time

,

Ex-warrants

,

Education IRA

,

Employee Retirement Income Security Act of 1974

,

Exclusion ratio

,

Ex-rights

,

Ex-rights date

,

Factor

,

Financial asset

,

First In First Out

,

Fixed asset

,

Fixed-charge coverage ratio

,

Federal Savings and Loan Association

,

Face-amount certificate

,

First call date

,

Flight to quality

,

Floating-rate bond

,

Flow of funds

,

Full price

,

Federal Call

,

Fill or kill

,

Front-ending an order

,

Fiat money

,

Floating exchange rate

,

Foreign currency option

,

Foreign exchange rate

,

Forward exchange rate

,

Fractional share

,

Forward P/E

,

Fully diluted earnings per share

,

Factors of production

,

Favorable balance of trade

,

Federal Reserve Discount Rate

,

Free market

,

Free market price

,

Far month

,

Forward price

,

Futures option

,

Futures price

,

Face amount

,

Fee-for-service

,

Fixed premium

,

Front-end load

,

Fair market value

,

First preferred stock

,

Form 8-K

,

Form S-1

,

Full stock

,

Friends and family offering

,

Fair Credit Reporting Act

,

Fair Debt Collection Practices Act

,

Fixed rate

,

Fixed-rate loan

,

Fixed-Rate Mortgage

,

Floating rate

,

Forward interest rate

,

Forward Rate Agreement

,

Full faith and credit

,

Family of funds

,

Fund of funds

,

Far option

,

Free and clear

,

Federal Insurance Contributions Act

,

Free right of exchange

,

Federal ID Number

,

Fair value

,

Fourth market

,

Glass-Steagall Act

,

Good Til Canceled

,

Growth stock

,

G-7

,

GDP implicit price deflator

,

General Agreement on Tariffs and Trade

,

G-8

,

Growth and income fund

,

Grant date

,

Group IRA

,

Gather in the stops

,

Graveyard market

,

Hidden asset

,

Hart-Scott-Rodino Act of 1976

,

Hit the bid

,

House call

,

House of issue

,

Hedge ratio

,

Health Insurance Portability and Accountability Act

,

High-tech stock

,

Holder in due course

,

High-ratio mortgage

,

Home equity line of credit

,

Home Mortgage Disclosure Act

,

Housing Market Index

,

Head and shoulders

,

Hammering the market

,

Held at the opening

,

Holding the market

,

Horizontal price movement

,

Imputed value

,

Inactive asset

,

Intangible asset

,

Interest-bearing

,

In escrow

,

Interest rate collar

,

Interest rate risk

,

Interest rate swap

,

Intrinsic value

,

Investment value

,

Issue date

,

In-house

,

Investment Advisor Act of 1940

,

Investment Company Act of 1940

,

Income stock

,

Indicated dividend

,

In line

,

Inefficient market

,

Inflation rate

,

Interest rate futures

,

Inverted market

,

Interbank Rate

,

Internal market

,

Insurable interest

,

Insurance premium

,

Inside market

,

Insider Trading sanctions Act of 1984

,

Interest

,

Interest expense

,

Internal Rate of Return

,

Indication of interest

,

In intestacy

,

Inter vivos trust

,

Imputed interest

,

Interest deduction

,

Interest-only loan

,

Interest rate

,

Interest rate cap

,

Interest rate ceiling

,

Interest rate floor

,

In play

,

In-process research and development

,

Implied volatility

,

Index option

,

Interest rate option

,

I/O strip

,

Inchoate interest

,

Interest-only strip

,

Income replacement ratio

,

In-service withdrawal

,

IRA rollover

,

Imbalance of orders

,

Imperfect market

,

In and out

,

In sympathy

,

In the tank

,

ITS

,

Jointly and severally

,

Jumping the gun

,

Joint and several liability

,

Joint and survivor annuity

,

Joint Stock Company

,

Knock-out option

,

Last In First Out

,

Liquidation value

,

Liquidity ratio

,

Lender of last resort

,

Law of one price

,

Lending at a rate

,

Limit-on-close order

,

Limit price

,

Long Market Value

,

Lawful money

,

Law of demand

,

Law of supply

,

London International Financial Futures and Options Exchange

,

London Inter-Bank Offer Rate

,

Level premium insurance

,

Loan stock

,

Letter of comment

,

Legal assets

,

Line of credit

,

Loan-to-cost

,

Loan-to-value

,

Loan value

,

Loan-value ratio

,

Lock-in

,

Lapsed option

,

Listed option

,

Leading the market

,

Locked in

,

Long-term gain or loss

,

Level I quotes

,

Liquid market

,

Locked market

,

Money center bank

,

Money order

,

Market basket

,

Market capitalization

,

Market conversion price

,

Maturity date

,

Maturity value

,

Maintenance call

,

Make a market

,

Margin call

,

Margin rate

,

Market if touched order

,

Market letter

,

Market maker

,

Market maker spread

,

Market on close order

,

Market order

,

Mark-to-market

,

Money management

,

Medium of exchange

,

Money

,

Marginal propensity to consume

,

Market economy

,

Marginable stock

,

Market rate

,

Money at call

,

Money factor

,

Mortgage interest deduction

,

Mortgage rate

,

Market cap

,

Market neutral

,

Market portfolio

,

Market timer

,

Market timing

,

Mill rate

,

Market analysis

,

Market

,

Market inefficiency

,

Market opening

,

Market return

,

Market-share weighted index

,

Market surveillance

,

Market-value weighted index

,

Market Volatility Index

,

Maximum price fluctuation

,

Mixed market

,

Money flow

,

Net book value

,

Net current assets

,

Net interest margin

,

Net quick assets

,

Net tangible assets

,

Noncurrent asset

,

Non-financial asset

,

Near money

,

Negotiable certificate of deposit

,

Negotiable Order of Withdrawal

,

National Market System

,

New York Stock Exchange

,

Nominal rate

,

Non-interest-bearing note

,

Notice of Sale

,

National Association of Securities Dealers

,

National Association of Securities Dealers Automated Quotations system

,

Net capital ratio

,

Nominal asset

,

Non-equity option

,

Normal market

,

Net Asset Value

,

Nonvoting stock

,

Null and void

,

Nonperforming asset

,

Notice of Default

,

Notional principal amount

,

Naked call

,

Naked option

,

Near option

,

Non-qualified stock option

,

Non-statutory stock option

,

National Association of Real Estate Investment Trusts

,

Nasdaq Small Cap Market

,

No-load stock

,

Nominal value

,

Narrow market

,

National Market Advisory Board

,

Negotiated market

,

Off the books

,

One time charge

,

Other current assets

,

Overhead ratio

,

Office of Thrift Supervision

,

Ordinary interest

,

Offering price

,

Out-of-favor

,

Over-the-Counter

,

On-floor order

,

On margin

,

Option account

,

Or better

,

Omitted dividend

,

Optional dividend

,

Open market operation

,

Operating rate

,

Open interest

,

One-share one-vote rule

,

Option

,

Optionable stock

,

Original issue stock

,

Offering date

,

Opinion of title

,

On account

,

On-the-spot loan

,

Open-end credit

,

Open-end mortgage

,

Open-end fund

,

Open-end management company

,

Option income fund

,

Option chain

,

Option contract

,

Option holder

,

Option margin

,

Option pool

,

Option premium

,

Option price

,

Option pricing curve

,

Options Clearing Corporation

,

Option series

,

Option spread

,

Options Prices Reporting Authority

,

Option writer

,

Out of the money

,

Open-end lease

,

Old age, survivors, and disability insurance

,

On-balance volume

,

Odd lot buy/sell ratio

,

On close

,

One man picture

,

On open

,

On the opening

,

Open market

,

Operationally efficient market

,

Option exchange

,

Outside market

,

Pooling of interests

,

Pre-depreciation profit

,

Pre-tax profit margin

,

Profit and loss statement

,

Pro forma

,

Pass-through coupon rate

,

Payment date

,

Payment-in-kind security

,

Premium bond

,

Premium over bond value

,

Premium over conversion value

,

Price Value of a Basis Point

,

Provisional call feature

,

Payment for order flow

,

Participating dividend

,

Payable date

,

Payout ratio

,

Preferred stock

,

Prior preferred stock

,

P&L

,

Primary earnings per share

,

Provision for income taxes

,

Peace dividend

,

Price index

,

Producer Price Index

,

Parity price

,

Physical market

,

Price limit

,

Pacific Rim

,

Pre-existing conditions

,

Premium raid

,

Primary market

,

Public offering price

,

Per stirpes

,

Power of Attorney

,

Paid

,

Paid up

,

Personal interest

,

Pool factor

,

Prepaid interest

,

Prime rate

,

Principal amount

,

Prioritization of debt

,

Projected maturity date

,

Purchase-money mortgage

,

Private Market Value

,

Prime rate fund

,

Physical option

,

Premium income

,

Price spread

,

Put option

,

Plan asset

,

Prudent Expert Act

,

Paid-in capital

,

Paid-in surplus

,

Percent held by institutions

,

Pre-syndicate bid

,

Private Investment in Public Equity

,

Perfect capital market

,

Preservation of capital

,

Put ratio backspread

,

Patronage dividend

,

Point-and-figure chart

,

Profit ratio

,

Painting the tape

,

Price range

,

Price-weighted index

,

Put/call ratio

,

Quick assets

,

Qualifying share

,

Real asset

,

Replacement value

,

Reports and Records

,

Residual value

,

Retention rate

,

Return of capital

,

Return on Capital

,

Return on Invested Capital

,

Return on Total Assets

,

Run rate

,

Real interest rate

,

Reserve ratio

,

Rate covenant

,

Redemption date

,

Redemption price

,

Remaining maturity

,

Reading the tape

,

Real-time trade reporting

,

Regulation D

,

Regulation G

,

Regulation T

,

Regulation U

,

Round of funding

,

Rules of Fair Practice

,

Rate of exchange

,

Reciprocal of European terms

,

Record date

,

Real economic growth rate

,

Retail Price Index

,

Reduced paid-up insurance

,

Ratio

,

Restricted stock

,

Regulation A

,

Right of first refusal

,

Right of rescission

,

Right to Know

,

Rate-improvement

,

Rate lock

,

Regulation Z

,

Remaining principal balance

,

Renegotiable rate

,

Revolving line of credit

,

Right of recourse

,

Rule of 78

,

Ratio calendar combination

,

Ratio calendar spread

,

Ratio spread

,

Ratio write

,

Registered options principal

,

Right of redemption

,

Retirement Equity Act of 1984

,

Roth IRA

,

Risk premium

,

Ratio analysis

,

Return on Capital Employed

,

Rate of return

,

Real rate of return

,

Real-time

,

Salvage value

,

Selling, General and Administrative Expenses

,

SG&A

,

Stranded asset

,

Savings and Loan

,

Sight letter of credit

,

Simple interest

,

S&L

,

Stock association

,

Secondary market

,

Securities and Exchange Commission

,

Sell

,

Series EE bond

,

Spot rate

,

Stock buyback

,

Straight value

,

Segregation of securities

,

Sell limit order

,

Sell order

,

Sell plus

,

Sell-side analyst

,

Sell the book

,

Stock loan

,

Stop price

,

Second preferred stock

,

Special dividend

,

Stock dividend

,

Savings rate

,

Standard of living

,

Swap rate

,

Settlement price

,

Single stock futures

,

Spot market

,

Spot price

,

Second-to-die insurance

,

Settlement options

,

Single-premium life insurance

,

Stock life insurance company

,

Surrender value

,

Secondary stock

,

Share

,

Short interest

,

Short interest ratio

,

SIC

,

Stock bonus plan

,

Stock certificate

,

Stock Clearing Corporation

,

Stock consolidation

,

Stock exchange

,

Stock index

,

Stock market

,

Stock option

,

Stock option plan

,

Stock power

,

Stock screening

,

Stock swap

,

Stock symbol

,

Stock ticker

,

Subscription price

,

Statute of Limitations

,

Sale and leaseback

,

Satisfaction of debt

,

Secondary mortgage market

,

Security interest

,

Seller financing

,

Share appreciation mortgage

,

Start rate

,

Staggered board of directors

,

Stock fund

,

Selling the spread

,

Short market value

,

Single option

,

Spread option

,

Strike index

,

Synthetic stock

,

Special use property

,

Savings Incentive Match Plan for Employees

,

SIMPLE IRA

,

Simplified Employee Pension IRA

,

Single-Premium Deferred Annuity

,

Spousal IRA

,

Shareholder value

,

Share price

,

Split-adjusted price

,

Stock list

,

Story stock

,

Selling short against the box

,

Shorting against the box

,

S Corporation

,

Short-term gain or loss

,

Standard mileage rate

,

Subchapter M

,

Subchapter S Corporation

,

Schedule C

,

Securities Act of 1933

,

Securities Acts Amendments of 1975

,

Securities Exchange Act of 1934

,

Seek a market

,

Settlement date

,

Smart money

,

Specialist market

,

S&P phenomenon

,

Stop and reverse

,

Tangible asset

,

Tangible net worth

,

Times interest earned

,

Total assets

,

Total cost

,

Time deposit

,

Time draft

,

T-Bill

,

Term to maturity

,

Take a position

,

Time order

,

Two-sided market

,

Two-way market

,

Total return

,

Trailing P/E

,

Tight money

,

Total asset turnover

,

Total return index

,

Treasury Stock

,

Tenancy by the entirety

,

Teaser rate

,

TED spread

,

Time note

,

Truth in Lending

,

Theoretical value

,

Time spread

,

Tenancy at will

,

Time-sharing

,

Top hat plan

,

The Street

,

Time stop

,

Timing the market

,

Taxpayer Relief Act of 1997

,

Tax Reform Act of 1986

,

Tax Reform Act of 1993

,

TRIN

,

Take a bath

,

Target price

,

Thin market

,

Third market

,

Tight market

,

Trade date

,

Transparent market

,

U.S. Government Agency Security

,

U.S. Savings Bond

,

U.S. Treasury

,

U.S. Treasury Bill

,

U.S. Treasury Bond

,

U.S. Treasury Note

,

U.S. Treasury Securities

,

Underlying debt

,

Uniform Securities Act

,

Unpaid dividend

,

Unemployment rate

,

Underlying security

,

Unearned interest

,

Uncovered call

,

Uncovered option

,

Unit of trade

,

Unit of trading

,

Variable rate

,

Value stock

,

Vanishing premium policy

,

Vetoing stock

,

Voting stock

,

Variable ratio write

,

Value averaging

,

Value investing

,

Variable ratio plan

,

Value Added Tax

,

Volatility

,

Written-down value

,

With interest

,

Williams Act

,

Wage price spiral

,

Waiver of premium

,

Watered stock

,

Widow-and-orphan stock

,

W-2 Form

,

W formation

,

Weak market

,

When, as, and if issued

,

Wide market

,

X or XD

,

Year-To-Date

,

Yankee bond market

,

Yield to call

,

Yield to maturity

,

Yield to worst

,

Y shares

,

Zero-base budgeting

,

Zero-coupon bond

,

Z shares

,

Zero-beta portfolio

,

Zero-investment portfolio

,

Zero downtick

,

Zero-minus tick

,

Zero-plus tick

,

Zero uptick


Home  Day Trading  Mutual Funds  Bonds  Hedge Funds  Forex  Futures  Options  Retirement Planning  Tag Heuer Watches
SEEHITS.COM HIT COUNTER