Equity Securities Flashcards
1
Q
American options
A
Option contracts that can be exercised anytime before expiration during life if contract.
All equity options trade as American options
2
Q
European options
A
Option contracts that can only be exercised on the expiration or maturity date
Both American and European options can trade at anytime
3
Q
CBOE VIX
A
A volatility index that measures price changes in the S&P 500 index options to show expected volatility.
Used as a measure of market risk and referred to as fear index or fear gauge
Index moves opposite of market
