Chicago Board Options Exchange (CBOE)

The Chicago Board Options Exchange (CBOE) is a stock exchange that specializes in trading options. It is the world's largest options exchange, and it is also one of the oldest. The CBOE was founded in 1973, and it was the first exchange to offer trading in standardized options contracts.

Options are financial contracts that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The underlying asset can be a stock, a bond, a commodity, or a currency.

There are two types of options: calls and puts. A call option gives the buyer the right to buy the underlying asset at a specified price. A put option gives the buyer the right to sell the underlying asset at a specified price.

The price of an option is determined by a number of factors, including the strike price, the expiration date, the volatility of the underlying asset, and the interest rate.

The CBOE offers a variety of options contracts on stocks, bonds, commodities, and currencies. The exchange also offers a number of derivative products, such as futures contracts and swaps.

The CBOE is a major player in the financial markets. It is the world's largest options exchange, and it is also one of the most important exchanges in the world. The CBOE plays a vital role in the pricing of securities and in the hedging of risk.

The CBOE is a self-regulatory organization (SRO). This means that the CBOE is responsible for regulating its own members. The CBOE has a number of rules and regulations that govern the trading of options. These rules are designed to protect investors and to ensure the integrity of the market.

The CBOE is a member of the Securities and Exchange Commission (SEC). The SEC is the federal agency that regulates the securities markets in the United States. The SEC has oversight over the CBOE and other SROs. The SEC ensures that the CBOE is complying with the federal securities laws.

The CBOE is a major player in the financial markets. It is the world's largest options exchange, and it is also one of the most important exchanges in the world. The CBOE plays a vital role in the pricing of securities and in the hedging of risk.