Sentences with phrase «instruments called contract»

Not exact matches

An option is a contract giving the owner the right, but not the obligation, to buy (in the case of calls) or sell (in the case of puts) the underlying instrument at a specified price for a specified period of time.

Naked Option: A naked option involves the sale of a call or put option without holding an equal and opposite position in the underlying instrument; in this case, a futures contract.

This factor is based on the relationship of the cash - instrument coupon to the required 8 percent deliverable grade of a futures contract as well as taking into account the cash instrument's maturity or call.

As we've explained, funds hedge currency using instruments called currency forwards, typically updating these contracts once a month, which means they can't track daily fluctuations.

Options on futures are similar to options on underlying instruments except that options on futures give the purchaser the right, in return for the premium paid, to assume a position in a futures contract (a long position if the option is a call and a short position if the option is a put), rather than to purchase or sell the futures contract, at a specified exercise price at any time during the period of the option.

The Fund may also engage in other currency transactions such as currency futures contracts, currency swaps, options on currencies, or options on currency futures, or it may engage in other types of transactions, such as the purchase and sale of exchange - listed and OTC put and call options on securities, equity and fixed - income indices and other financial instruments; and the purchase and sale of financial and other futures contracts and options on futures contracts.

A contract regarding any combination of capital assets is called a financial instrument, and may serve as a

We call them loans and deposits and structured investment vehicles, notes and derivatives, but at the end of the day they are all contracts and legal instruments.