contracts are standardized, accurate pricing models are often available. Exchange tradedoptions include:1.stock options,
(OTC options, also called "dealer options") are traded between two private parties, and are not listed on an exchange. The terms of an OTCoption are unrestricted and may be individually tailored to meet any business need. Ingeneral, at least one of the counterparties to an OTC option is a well-capitalizedinstitution. Option types commonly traded over the counter include:1.interest rate options2.currency cross rate options, and
are issued by a company to its employees as compensation.
Main article:Option style Naming conventions are used to help identify properties common to many different types of options. These include:
option - an option that may be exercised on any trading day on or beforeexpiration.
option - an option that may be exercised only on specified dates on or beforeexpiration.
option - any option with the general characteristic that the underlying security's price must pass a certain lever or "barrier" before it can be excercised
option - any of a broad category of options that may include complex financialstructures.
option - by definition, any option that is not exotic.