Business English Lesson – Advanced Level''''s archiveCall and Put Options doc

spread, but for our purposes, we'll discuss its normal use: this is when we sell a front-month, lower-strike call option and buy a longer-term, higher-strike call option or when we sell

Business English Lesson – Advanced Level's archive

Call and Put Options

1 There are various ways to use a spread, but for

our purposes, we'll discuss its normal use: this is when we

sell a front-month, lower-strike call option and buy a

longer-term, higher-strike call option or when we sell a

front-month higher-strike put option and buy the

longer-term, lower-strike put

diagonal

horizontal

temporal

vertical

2 The Exchange indicated that a ' order imbalance'

is one resulting in a price change from the last sale of the

lesser of 10% or three points for stocks between $10 and

$99.99, and five points for stocks $100 or more, unless a

Floor Governor deems circumstances warrant a lower

parameter

consequential

critical

significant

substantial

3 If a brokerage firm is unable to locate an account owner

and the account has remained inactive for the period of

time specified by state law, the firm must report it to the

state, which then claims the account through a process

called ' ', whereby the state becomes the owner of

the account

escarpment

escheatment

estrangement

exactment

4 The final goes to anyone who got a red herring

within 25 days

offer

option

prospectus

tender

5 One of the fundamental laws of a capitalist economy is

that market-one where every player has access to

all product and pricing information — is the ideal market;

this market will, over time, converge towards the best

pricing for the best products with the best level of services

a free

an open

an optimal

a transparent

6 Unlike sales taxes that appear on a cash register

receipt, taxes are those charges that are not

expressly clear to the taxpayer; for example, the average

price of a gallon of gas is $1.49 and 43 cents of that

amount represents taxes — that 37% tax rate does not

appear on your receipt

buried

closed

hidden

veiled

7 Philip Morris has a yield of 5% and a payout (dividend

divided by estimated 2001 earnings) of only 52% (for

dividend, we multiply the latest quarterly dividend by

four); it is not that Philip Morris is so generous, but the rich

yield reflects the uncertain prospects of the tobacco

industry

accumulated

calculated

extended

indicated

8 The Fair Reporting Act (FCRA), enforced by the

FTC, is designed to promote accuracy and ensure the

privacy of the information used in consumer reports;

businesses that supply information about you to CRAs and

those that use consumer reports also have responsibilities

under the law

Civic

Client

Credit

Customer

9 The ITS participants also proposed to develop a '

order information system', based on the existing ITS, that

would require specialists to aggregate and enter orders for

display, and brokers executing a block trade outside the

best bid or offer would be required to satisfy the LOIS

orders

legal

limit

line

load

10 A market order is another very common order

because a lot of spread betting clients like to finish up the

day with a flat position in their account

at last

at rest

on close

on hold