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E

Early Exercise
To exercise an option prior to its maturity date (see also options).

EBIT
Earnings before interest and tax

EBITA
Earnings before interest, tax and amortisation

EBITDA
Earnings before interest, tax, depreciation and amortisation

Efficient Market Hypothesis
Hypothesis that all relevant information is reflected in the price of an asset.

Embedded Option
An option that is an inseparable part of another instrument. Often found in commodities where the contract for physical delivery is often linked to a commodity index but may be bounded by a maximum and/or minimum price.

EPS
Earnings per share

Equity Swap
A swap where the return on an equity portfolio is exchanged for either a fixed or floating rate of interest.

European Option
An option that can only be exercised on its expiration date. (see also options).

Exchange Traded Option (ETO)
An option that is traded on a regulated exchange. (see also options).

Exotic Option (ETO)
A non standard option. (see also options).

Ex-dividend Date
The ex-dividend date is specified when a dividend is declared. Investors who own shares of the stock on the ex-dividend date receive the dividend.

Exposure
The quantity of an asset (physical and/or financial) that is subject to fluctuations in price and hence value.

Exercise Price
The price at which the underlying asset may be bought or sold in an option contract. (see also strike price).

Expiration Date
The end of life of a derivative contract. (see also maturity date).




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