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Strap
A trading strategy involving the purchase of two call options and one put option with the same strike price and expiration date, expecting a large move in the underlying asset.
Riskless Lending
A theoretical lending scenario where there is no risk of default by the borrower, often used as a concept in economic models.
Exercise Price
The specified price at which the holder of an option can buy (for a call option) or sell (for a put option) the underlying asset.
Narrow Range
Refers to a situation where the difference between the high and low prices, values, or figures within a given period is relatively small.
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