Implied Contract

Filed Under » ,
Dictionary Says

Definition of 'Implied Contract '

A legal substitute for a contract. An implied contract is an agreement created by actions of the parties involved, but it is not written or spoken. This is a contract assumed to have been drawn. In this case, there is no written record nor any actual verbal agreement. A form of an implied contract is an implied warranty provided automatically by law. An implied warranty means that when a product is purchased, it is guaranteed to work for its ordinary purpose. For example, a refrigerator is fit to keep food cool.
Investopedia Says

Investopedia explains 'Implied Contract '

Implied contract is an agreement which is not reduced to writing but is created on the basis of the behavior of the parties involved. Under an implied contract, it is suggested that the parties involved are acting under an agreement. In the medical field, an implied contract exists when a veterinarian examines and treats an animal. It is implied that the veterinarian will do his/her best and that the client will pay the fee charged. Historically the veterinarian has treated animals and the owners have paid.
Search results for

'Implied Contract '

  • The Ins And Outs Of Selling Options

    http://www.investopedia.com/articles/optioninvestor/09/selling-options.asp
    ... Therefore, the further out of the money a contract is or the deeper in the money,
    the less sensitive it will be to implied volatility changes. ...

  • The Basics Of Buying Options

    http://www.investopedia.com/articles/optioninvestor/09/buying-options.asp
    ... that implied volatility usually inflates most during bearish turns. This may actually
    give put buyers an advantage over call buyers. Either way, the contract ...

  • The Volatility Index: Reading Market Sentiment

    http://www.investopedia.com/articles/optioninvestor/09/implied-volatility-contrary-indicator.asp
    ... An option contract can be made up of intrinsic and extrinsic value. ... which is the
    amount of premium being paid until expiration, and implied volatility, which ...

  • Ratio Writing: A High-Volatility Options Strategy

    http://www.investopedia.com/articles/optioninvestor/02/111202.asp
    ... we have high overall implied volatility and a forward implied-volatility skew ... points
    well above significant highs reached by the underlying futures contract. ...

  • How To Use Options To Make Earnings Predictions

    http://www.investopedia.com/articles/optioninvestor/11/predict-earnings-with-options.asp
    ... the magnitude of this implied volatility. In Practice: Google If we purchase one
    at-the-money Google (Nasdaq:GOOG) call option for $1,200 per contract and one ...

  • How to Use Options to Predict Earnings

    http://stocks.investopedia.com/stock-analysis/moneyshow/HowtoUseOptionstoPredictEarnings.aspx
    ... the magnitude of this implied volatility. In Practice: Google (GOOG) If we purchase
    one at-the-money Google (GOOG) call option for $1,200 per contract and one ...

  • Option Volatility: Historical Volatility | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility2.asp
    ... is both an input to valuation models (statistical/historical) and an output (implied). ...
    a measure of the volatility of the underlying stock or futures contract. ...

  • Why Wages Stick When The Economy Shifts

    http://www.investopedia.com/articles/economics/09/wage-stickiness.asp
    ... In fact, a cut in nominal wages can be viewed by the employee as a sort of
    "breach of contract," even if the contract is only implied. ...

  • An Option Strategy for Trading Market Bottoms

    http://www.investopedia.com/articles/optioninvestor/02/081902.asp
    ... futures 31 days into our trade. IV represents implied volatility of the
    options trading on the December S&P 500 futures contract. ...

  • Options Volatility: Valuation | Investopedia

    http://www.investopedia.com/university/optionvolatility/volatility4.asp
    ... historical (statistical) volatility is marked by a brown line; implied volatility
    is ... of how the volatility of the underlying stock or futures contract has been ...

Related Articles

Partner Links