1
Q
Derivative
A
A contract that gets value from something else.
2
Q
Hedging
A
Protecting yourself from losing money.
3
Q
Speculating
A
Guessing to make money.
4
Q
Leverage
A
Using a little money to control a big position.
5
Q
Option
A
Right (not obligation) to buy or sell at a set price.
6
Q
Forward
A
Private deal for a future trade
7
Q
Future
A
Public exchange-traded deal that updates daily.
8
Q
Swap
A
Agreement to exchange payments.
9
Q
Call Option
A
Right to buy.
10
Q
Put Option
A
Right to sell.
11
Q
Strike Price
A
Set price in the contract.
12
Q
Premium
A
Cost of the option.
13
Q
Margin Call
A
Broker asks for more money if you lose too much.
14
Q
Notional Value
A
Total value of what you’re controlling.
15
Q
Marked-to-Market
A
Daily update of profits/losses.
Option & Futures
flashcards
Decks in class (1)
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