Elasticity

This is equal to Leverage multiplied by Delta. This figure represents the percentage change in the price of an Option or Warrant arising from a percentage change in the Underlying.

European Option

An Option which can only be exercised at the end of its Life, i.e. on the Expiration Date.

European Style Exercise

An Option or Warrant that can be exercised only on its Expiration Date.

Exercise

The process by which the holder of an Option or a Warrant exercises the rights under the Option or the Warrant. See Expiration Date.

Expiration Date

The date on which the holder of an Option or a Warrant exercises the rights under the Option or the Warrant. See Expiration Date.

Exercise Period

The period during which rights under an Option or a Warrant (whether to buy or to sell) can be exercised, and after the Exercise Period has expired, these rights can no longer be exercised. The Life of an Option or a Warrant is its Exercise Period.

Exercise Price

See Strike Price.

Exotic Option

An Option or Warrant which has a non-standard structure, e.g. unusual procedures for calculating or determining the Strike Price, combinations of Caps and Floors, inclusion of a Range, etc.

Expiration Date

The date on which rights under an Option or a Warrant (whether to buy or to sell) expire, and can no longer be exercised. Any rights pertaining to an Option or a Warrant should be exercised at the latest on this date, otherwise it expires and is worthless.

 

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