AVERAGE STRIKE OPTION
It is a type of Asian option wherein the strike price is based on the spot rate’s average over a specific period of time. The dates that are used in calculating the average strike price are referred as "fixings" that cover the option’s life. When the average strike options reached their expiration date, they will be considered in the money only if the spot rate is bigger than the average strike.
POPULAR TERMS
Capital Commitment
Future capital payments that a firm has pledged to pay out on long-term assets over a particular time period. This also talks about the securities ...
Overwithholding
A term which refers to an excess amount of tax being withheld for an employee. It will be sent back as a refund to the taxpayer after he or she fil ...
Diluted Earnings Per Share - Diluted EPS
It is the measure of a company’s profits.
Covenant
Promise a firm made to an indenture or other formal debt agreement, stating some activities will or won’t be carried out. In finance, it freq ...
Gross Spread
Difference between the security price paid by the underwriter and the actual price charged to the public. The spread compensates the underwriters o ...
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