Dictionary
Financial Glossary
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 Option
The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Investors who purchase call options bet the stock will be worth more than the price set by the option (the strike price), plus the price they paid for the option itself. Buyers of put options bet the stocks price will go down below the price set by the option. An option is part of a class of securities called derivatives, so named because these securities derive their value from the worth of an underlying investment.
A privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.
An option takes the form of a contract that gives its holder the right but not the obligation to buy or sell a fixed number of shares (or other instrument) at a fixed price on or before a given date.A CALL option is an option to BUY shares. Call options generally rise in price if the underlying shares rise in price (and vice versa).A PUT option is an option to SELL shares. Put options generally rise in price if the underlying shares fall in price (and vice versa).Note that the holder has a right, not an obligation. This means that he can decide to exercise the option to buy or sell the shares if he wants, but he doesn"t have to if he decides that it is not in his interests to do so. The main criterion for that decision is whether the exercise price of the option is higher or lower than the current price of the underlying share.Options can exist over a number of different classes of asset including property, chattels, and most types of financial assets. For most people, they relate to ordinary shares, and the options are called equity options. In London they are traded on LIFFE.
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Glossary 
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Dictionary
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Option - The right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Investors who purchase call options bet the stock will be worth more than the price set by the option (the strike price), plus the price they paid for the option itself. Buyers of put options bet the stocks price will go down below the price set by the option. An option is part of a class of securities called derivatives, so named because these securities derive their value from the worth of an underlying investment.
A privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.
An option takes the form of a contract that gives its holder the right but not the obligation to buy or sell a fixed number of shares (or other instrument) at a fixed price on or before a given date.A CALL option is an option to BUY shares. Call options generally rise in price if the underlying shares rise in price (and vice versa).A PUT option is an option to SELL shares. Put options generally rise in price if the underlying shares fall in price (and vice versa).Note that the holder has a right, not an obligation. This means that he can decide to exercise the option to buy or sell the shares if he wants, but he doesn"t have to if he decides that it is not in his interests to do so. The main criterion for that decision is whether the exercise price of the option is higher or lower than the current price of the underlying share.Options can exist over a number of different classes of asset including property, chattels, and most types of financial assets. For most people, they relate to ordinary shares, and the options are called equity options. In London they are traded on LIFFE.
Option : the right (but not the obligation) to buy or sell securities at a fixed price within a specified period.
gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. investors, not companies, issue options. investors who purchase call options bet the stock will be worth more than the price set by the option (the strike price), plus the price they paid for the option itself. buyers of put options bet the stocks price will go down below the price set by the option. an option is part of a class of securities called derivatives, so named because these securities derive their value from the worth of an underlying investment.
a privilege sold by one party to another that offers the buyer the right, but not the obligation, to buy (call) or sell (put) a security at an agreed-upon price during a certain period of time or on a specific date.
an option takes the form of a contract that gives its holder the right but not the obligation to buy or sell a fixed number of shares (or other instrument) at a fixed price on or before a given date.a call option is an option to buy shares. call options generally rise in price if the underlying shares rise in price (and vice versa).a put option is an option to sell shares. put options generally rise in price if the underlying shares fall in price (and vice versa).note that the holder has a right, not an obligation. this means that he can decide to exercise the option to buy or sell the shares if he wants, but he doesn"t have to if he decides that it is not in his interests to do so. the main criterion for that decision is whether the exercise price of the option is higher or lower than the current price of the underlying share.options can exist over a number of different classes of asset including property, chattels, and most types of financial assets. for most people, they relate to ordinary shares, and the options are called equity options. in london they are traded on liffe.
