- Industry: Financial services
- Number of terms: 73910
- Number of blossaries: 1
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The relationship between the price of a put and the price of a call on the same underlying security with the same expiration date, which prevents arbitrage opportunities. Holding the underlying stock and buying a put will deliver the exact payoff as buying one call and investing the present value (PV) of the exercise price. The call value equals C = S + P - PV(k).
Industry:Financial services
A New York Stock Exchange rule that governs the behavior of specialists. Positive obligation is the mandate of the specialists to step in and act as either the buyer or the seller public investor orders exist do not match up naturally. Also known as affirmative_obligation. Related: negative_obligation.
Industry:Financial services
The ratio of the volume of put options traded to the volume of call options traded, which is used as an indicator of investor sentiment (bullish or bearish).
Industry:Financial services
A life insurance policy in which all premiums that are due have been paid.
Industry:Financial services
When long-term debt interest rates are higher than short-term debt rates (because of the increased risk involved with long-term debt security).
Industry:Financial services
A bank's letter certifying that the person writing a put option has sufficient funds in an account to cover the exercise price if required.
Industry:Financial services
Illegal practice by traders who manipulate the market by buying and selling a security to create the illusion of high trading activity and to attract other traders who may push up the price.
Industry:Financial services
