Option/Definition

From Citizendium
< Option
Revision as of 16:14, 13 March 2008 by imported>Nick Gardner
Jump to navigation Jump to search

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".