Examlex
Simplify the complex fraction.
Covered Call
An options strategy where an investor holds a long position in an asset and sells call options on that same asset to generate income from the option premiums.
Exchange-Traded Options
Options contracts that are traded on a regulated exchange rather than being dealt with privately between two parties.
OTC Options
Over-the-counter options are trades made directly between two parties, not on a formal exchange, tailored to the parties' requirements.
Counterparty Credit Risk
The risk that the other party in a financial transaction might default on their contractual obligations.
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