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Equity derivatives

Futures or options based on underlying equity instruments, whether individual stocks, or stock market indices.

 

Equity options

The right but not the obligation to buy (call) or sell (put) an underlying equity instrument. Standard equity options are available on individual UK stocks, FTSE 100 and FTSE 250 equity indices, and FLEX® options are available on the FTSE 100 Index at LIFFE.

 

European option

An option which is only exercisable at expiry.

 

Exchange Access System (EASy)

EASy network is a high band-width fault-tolerant channel between LIFFE and its Membership. A simple communication path is provided to members through which any LIFFE service can be accessed. Data feeds and services currently available through a variety of different channels can be consolidated onto this new network. New services can quickly be made available to members without communication changes.

 

Execution risk

The risk inherent in completing the final stages of an exchange-traded transaction.

 

Exercise

The process by which an option holder has the right to buy or sell.

 

Exercise price

The price at which the option holder has the right to buy or sell.

 

Expiry

The last date an option can be traded or exercised.