We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Index Options

Definition:

Options on an index fund.

You pay for these options so that you can buy or sell an index fund for a specific price by a specific date. You can use index options, just like stock options, as another way to invest money and make money on index funds.