Option styleIn finance, the style or family of an option is the class into which the option falls, usually defined by the dates on which the option may be exercised. The vast majority of options are either European or American (style) options. These options—as well as others where the payoff is calculated similarly—are referred to as "vanilla options". Options where the payoff is calculated differently are categorized as "exotic options". Exotic options can pose challenging problems in valuation and hedging.
Option (finance)In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction.
Web browserA web browser is an application for accessing websites. When a user requests a web page from a particular website, the browser retrieves its from a web server and then displays the page on the user's screen. Browsers are used on a range of devices, including desktops, laptops, tablets, and smartphones. In 2020, an estimated 4.9 billion people have used a browser. The most used browser is Google Chrome, with a 65% global market share on all devices, followed by Safari with 18%.
Asian optionAn Asian option (or average value option) is a special type of option contract. For Asian options, the payoff is determined by the average underlying price over some pre-set period of time. This is different from the case of the usual European option and American option, where the payoff of the option contract depends on the price of the underlying instrument at exercise; Asian options are thus one of the basic forms of exotic options.
Options strategyOption strategies are the simultaneous, and often mixed, buying or selling of one or more options that differ in one or more of the options' variables. Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply known as Puts, which give the buyer the right to sell a particular stock at the option's strike price. This is often done to gain exposure to a specific type of opportunity or risk while eliminating other risks as part of a trading strategy.
Binary optionA binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the NYSE American).
Opera (web browser)Opera is a multi-platform web browser developed by its namesake company Opera. The browser is based on Chromium, but distinguishes itself from other Chromium-based browsers (Chrome, Edge, etc.) through its user interface and other features. Opera was initially released on 10 April 1995, making it one of the oldest desktop web browsers still actively developed. It was commercial software for its first ten years and had its own proprietary layout engine, Presto. In 2013, it switched from the Presto engine to Chromium.
Chromium (web browser)Chromium is a free and open-source web browser project, mainly developed and maintained by Google. This codebase provides the vast majority of code for the Google Chrome browser, which is proprietary software and has some additional features. Chromium's logo is identical in shape to that of Google Chrome, but with blue colors instead of being multicolor. The Chromium codebase is widely used. Microsoft Edge, Samsung Internet, Opera, and many other browsers are based on the Chromium code.
Real options valuationReal options valuation, also often termed real options analysis, (ROV or ROA) applies option valuation techniques to capital budgeting decisions. A real option itself, is the right—but not the obligation—to undertake certain business initiatives, such as deferring, abandoning, expanding, staging, or contracting a capital investment project. For example, real options valuation could examine the opportunity to invest in the expansion of a firm's factory and the alternative option to sell the factory.
Exotic optionIn finance, an exotic option is an option which has features making it more complex than commonly traded vanilla options. Like the more general exotic derivatives they may have several triggers relating to determination of payoff. An exotic option may also include a non-standard underlying instrument, developed for a particular client or for a particular market. Exotic options are more complex than options that trade on an exchange, and are generally traded over the counter.