appendix. Basic Notions
Definition of Terms
American option. A type of option contract that gives its buyer the right to buy or sell the underlying asset at any time point until the expiration date.
Call option. A standard contract, which gives its buyer the right (without imposing any obligations) to buy a certain underlying asset at a specific point of time in the future (see expiration date) for a fixed price (see strike price).
Combination. Any number of different options corresponding to the same underlying asset can be considered and analyzed as a whole entity. Options comprising a combination may be long (bought) and/or short (sold) and may have the same or different expiration dates and strike prices.
Delta. The first partial derivative ...