Amount in which the forward price has exceeded the current market price.
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Related Terms
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An option is a financial contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price.
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Forward guidance is a tool used by a central bank to try and influence market expectations of future levels of interest rates. “Forward guidance” in monetary policy means providing some information...
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A forward contract involves an agreement between two parties to buy or sell an underlying asset at a predetermined price on a specified future date.
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Options time decay, also known as theta, refers to the gradual reduction in the value of an options contract as it approaches its expiration date.
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A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]