Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
The price at which an option holder may buy or sell the underlying, fixed when the contract is listed.
A given strike in a given expiry is a distinct instrument with a start date and an end date. The same strike number next month is a different contract with different time remaining and different liquidity.
Settlement of a derivative contract by delivery of the underlying shares against cash, rather than by paying the cash difference.
It takes every single-stock future open at expiry and every single-stock option that finishes in the money, while index contracts stay cash-settled — which is why the two behave so differently in the final week. A cheap option finishing marginally in the money becomes an obligation for the full strike price times lot size.
A right issued by a company to buy its own shares later at a fixed price, frequently allotted to promoters.
Watch the strike price and who holds them. Promoter warrants priced well below where the share eventually trades are a transfer from minority shareholders, disclosed in the notes rather than announced.