Across
- 1. Mandatory financial charges levied on income, property, or other goods and services.
- 4. of an option is directly related to the expiration date. This is the date on which the contract will expire. If this date passes and you, the holder of the contract, do not sell or exercise your option then the contract expires without any value. This is probably the main reason why options trading can be a high-risk venture.
- 7. Options with limited exercise windows, allowing for early exercise on predetermined dates before expiry, but not any time like American options.
- 8. Option contracts with more complex payouts than standard calls or puts, often tied to specific events.
- 9. The gradual decrease in the value of an option as it nears its expiration date.
Down
- 2. Options that can be exercised at any point before their expiration date.
- 3. is the difference between the market price of the stock and the strike price of the stock. It will be positive provided you are in-the-money and zero if you are either at-the-money or out-of-the-money. For an in-the-money option, this value will increase as the difference between the strike price and the stock price increases.
- 5. Options that can only be exercised on their specific expiry date.
- 6. Options where the ability to exercise becomes dependent on the underlying asset price reaching a certain barrier level.