Option/Definition: Difference between revisions
< Option
Jump to navigation
Jump to search
imported>Nick Gardner No edit summary |
imported>Alexander Wiebel (<noinclude>{{Subpages}}</noinclude>) |
||
| (3 intermediate revisions by 2 users not shown) | |||
| Line 1: | Line 1: | ||
A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated price and at a stipulated time. | <noinclude>{{Subpages}}</noinclude> | ||
A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated price (termed the "exercise price") and at a stipulated time. An option to buy is called a "call option" and an option to sell is called a "put option". | |||
Latest revision as of 08:09, 23 May 2008
A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated price (termed the "exercise price") and at a stipulated time. An option to buy is called a "call option" and an option to sell is called a "put option".