an options exchange, depending on the option. The market price of an American-style option normally closely follows that of the underlying stock being...

Employee stock options (ESO) is a label that refers to compensation contracts between an employer and an employee that carries some characteristics of...

Stock option expensing is a method of accounting for the value of share options, distributed as incentives to employees within the profit and loss reporting...

Stock option return calculations provide investors with an easy metric for comparing stock option positions. For example, for two stock option positions...

Incentive stock options (ISOs), are a type of employee stock option that can be granted only to employees and confer a U.S. tax benefit. ISOs are also...

share option plans to encourage employee share ownership. To facilitate employee stock ownership, companies may allocate their employees with stock, which...

buy back stock, which often lets investors recoup the initial investment plus capital gains from subsequent rises in stock price. Stock options issued by...

called "put-call parity". Put options are most commonly used in the stock market to protect against a fall in the price of a stock below a specified price....

Call options, simply known as Calls, give the buyer a right to buy a particular stock at that option's strike price. Opposite to that are Put options, simply...

Non-qualified stock options (typically abbreviated NSO or NQSO) are stock options which do not qualify for the special treatment accorded to incentive stock options...

asset. Option contracts traded on futures exchanges are mainly American-style, whereas those traded over-the-counter are mainly European. Most stock and...

private-activity municipal bonds, the bargain element of incentive stock options, foreign tax credits, and home equity loan interest deductions. This...

shareholders by buying back stock. One other reason for a company to buy back its own stock is to reward holders of stock options. Call option holders are hurt by...

In finance, options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which...

Stock market index option is a type of option, a financial derivative, that is based on stock indices like the S&P 500 or the Dow Jones Industrial Average...

value. However, the option to buy a $39 stock at $30 is worth less than the option to buy a $40 stock at $30. Therefore, option exchanges have formulas...

call or put option, Black and Scholes showed that "it is possible to create a hedged position, consisting of a long position in the stock and a short...

contract known as a "call" or a "put" against stock that they own or are shorting. The seller of a covered option receives compensation, or "premium", for...

redeemable shares, bonus shares, right shares, and employee stock option plan shares. Stock Equity Shares outstanding are shares that are authorized by...

compensation. The median cash compensation was $5.3 million, the median stock and option grants were $9 million. In 2018, the highest-paid CEO in the US was...

Markets, Inc. is an American company that owns the Chicago Board Options Exchange and the stock exchange operator BATS Global Markets. Founded by the Chicago...

risk" for having back-dated stock options grants between 1997 and 2002. On May 18, 2006, amid media reports about options practices, Broadcom said it...

warrant (or callable bull/bear contract) is a kind of stock option. Specifically, it is a barrier option of the down and out type. It is similar to a vanilla...

allegations that the company and certain executives had illegally backdated stock option grants. The U.S. Securities and Exchange Commission stated that "KLA...

Employee stock options are call options on the common stock of a company. Their value increases as the company's stock rises. Employee stock options are mostly...

Philadelphia Stock Exchange, or the Chicago Mercantile Exchange for options on futures contracts. The global market for exchange-traded currency options was notionally...

company's stock option grant practices. An investigation determined "grant dates were chosen with the benefit of hindsight" to make the options more valuable...

means simultaneously buying a call option and selling a put option. This has the effect of simulating being long on a stock or commodity position. Many hedges...

A naked option or uncovered option is an options strategy where the options contract writer (i.e., the seller) does not hold the underlying asset to cover...

its iconic gold medal, for exposing companies that illegally backdate stock options they awarded executives to increase their value. Kate Kelly wrote a...