Option/Definition: Difference between revisions
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A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated 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". | 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". | ||
Revision as of 16:14, 13 March 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".