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imported>Doug Williamson |
imported>Administrator |
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| | (SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider. |
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| A financial option is a derivative instrument giving the holder the right - but not the obligation - to buy or sell an underlying asset on or before a future date at a specified price.
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| Options are more commonly ‘cash settled’ by paying or receiving a net cash amount, rather than being settled by physical delivery of the underlying asset.
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| Like other derivative instruments, options can be used to:
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| • Speculate by creating new exposures to market rates.
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| • Hedge existing exposures to changes in market rates.
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| • Arbitrage in combination with other related instruments to achieve 'risk free' profits.
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| When used for hedging purposes, options generally provide insurance-like protection against worst case outcomes. (Contrasted with 'fixing' hedging instruments - such as FRAs - which effectively fix the market rate being hedged.)
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| More generally, choice.
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| 3.
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| A real option is an option relating to an operational decision or outcome.
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| | == See also == |
| | * [[Outsourcing]] |
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| == See also ==
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| * [[American-style option]]
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| * [[Asian option]]
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| * [[Binomial option pricing model]]
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| * [[Black Scholes option pricing model]]
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| * [[Call option]]
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| * [[Cash settlement]]
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| * [[Delta]]
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| * [[Derivative instrument]]
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| * [[European-style option]]
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| * [[Exercise]]
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| * [[Exotic option]]
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| * [[Fixing]]
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| * [[Fixing instrument]]
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| * [[Foreign exchange forward contract]]
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| * [[Greeks]]
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| * [[Hedging]]
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| * [[Insurance]]
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| * [[Interest rate guarantee]]
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| * [[Interest rate option]]
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| * [[Outright]]
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| * [[Payoff]]
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| * [[Put option]]
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| * [[Put-call parity theory]]
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| * [[Real option]]
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| * [[Straddle]]
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| * [[Strike price]]
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| * [[Swaption]]
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| * [[Traded option]]
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| * [[Underlying asset]]
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| * [[Underlying price]]
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| * [[Volatility index]]
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| * [[Warrant]]
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Revision as of 14:20, 23 October 2012
(SSC). Shared Services provide a service by one part of an organisation or group where previously the service had been found in more than one part of the organisation or group. The funding and resourcing of the service is shared so the providing department becomes an internal service provider.
See also
