Another index to understand.
Luckily, this one is easier to understand than it sounds.
Fixed Return Options (FROs) were recently launched on AMEX. FROs are defined here, but there is one critical point to understand. Traditional options (puts or calls) rely on the underlying stock’s price when the market closes on the expiration date.
The settlement index for […]
AMEX FRO SETTLEMENT INDEX (VWAP)
May 15th, 2008 · 3 Comments
Tags: Fixed Return Options · Options 101