PUT-CALL PARITY
A principle referring to the static price relationship, given a stock's price, between the prices of European put and call options of the same class (i.e. same underlying, strike price and expiration date). This relationship is shown from the fact that combinations of options can create positions that are the same as holding the stock itself. These option and stock positions must all have the same return or an arbitrage opportunity would be available to traders. Any option pricing model that produces put and call prices that don't satisfy put-call parity should be rejected as unsound because arbitrage opportunities exist.
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Accumulation Area
A price where the investors purchase shares of a particular stock. It is usually determined by the looks of the volume and its price. Some analysts ...
SEC Form DEF13E3
SEC Form DEF13E3 is a form which is used as an initial preliminary statement for a company or affiliate that is turning private. “Going priva ...
Transaction
1. Deal between a buyer and a seller to exchange a product, service, or financial instrument.
2. In accounting, an event or condition aff ...
IRS Publication 596
A document that gives information on the earned income credit (EIC) offered to individuals who earn below $51,567. To be eligible to receive EIC, a ...
Depository Trust Company Tracking - DTCT
A service, used by underwriting firms, that provides a method of tracking the exact path of purchases and sales of newly issued securities.
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