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

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