Off-balance-sheet Financing
Financing that is not shown as a liability in a company's balance sheet.

Oil Refinery
A plant where crude oil is separated into refined products.

A contract that gives the purchaser the right, but not the obligation, to buy (refer to call option) or sell (refer to put option) the underlying asset at a pre-specified price (known as the strike price).

Organisation of Petroleum Exporting Countries (OPEC)
OPEC controls the marginal supply of crude oil in an oversupplied market. Current members are Algeria, Indonesia, Iran, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, Venezuela and UAE (Iraq is also a member but with limited powers).

Open Interest
The number of open positions in an exchange traded contract.

Operational Risk
The risk that a firm's internal practices, policies and systems are not adequate to prevent a loss being incurred, either because of market conditions or operational difficulties. Such deficiencies may arise from failure to measure or report risk correctly, or from lack of controls over trading staff. (refer also to market risk or credit risk).

Opportunity Cost of Capital
Expected return that is foregone by investing in a project rather than in comparable financial securities.

Over-the-counter (OTC)
A customised derivative contract as opposed to an exchange traded derivative which has standardised terms and conditions.

Out-the-money Options
An option that has no intrinsic value. For calls, an option which has a strike price above the current value of the underlying asset. For puts, an option which has a strike price below the current value of the underlying asset.

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