Investment Terms: E
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This article is from the Investment Terms.
Investment Terms: E
- Econometrics:
The application of statistical and mathematical methods in the field of economics to test and quantify economic theories and the solutions to economic problems. - Equilibrium Price:
The market price at which the quantity supplied of a commodity equals the quantity demanded. - Eurodollars:
U.S. dollars on deposit with a bank outside of the United States and, consequently, outside the jurisdiction of the United States. The bank could be either a foreign bank or a subsidiary of a U.S. bank. - European Terms:
A method of quoting exchange rates, which measures the amount of foreign currency needed to buy one U.S. dollar, i.e., foreign currency unit per dollar. See Reciprocal of European Terms. - Exchange For Physicals (EFP):
A transaction generally used by two hedgers who want to exchange futures for cash positions. Also referred to as against actuals or versus cash. - Exercise:
The action taken by the holder of a call option if he wishes to purchase the underlying futures contract or by the holder of a put option if he wishes to sell the underlying futures contract. - Exercise Price:
See Strike Price. - Expanded Trading Hours:
Additional trading hours of specific futures and options contracts at the Chicago Board of Trade that overlap with business hours in other time zones. - Expiration Date:
Options on futures generally expire on a specific date during the month preceding the futures contract delivery month. For example, an option on a March futures contract expires in February but is referred to as a March option because its exercise would result in a March futures contract position. - Extrinsic Value:
See Time Value.
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