Terms Beginning With 'l'

Listed Option

  • January 29, 2020
  • Team Kalkine

Listed option, also termed as an exchange-traded option, is traded on a registered exchange and is a kind of derivative security. This option gives the holder the right to purchase or sell a certain amount of the underlying asset at a definite value by a specific date without any obligation.

Unlike OTC (over the counter) options, listed options have standardized settlements, strike costs, clearing and expiration dates.

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