Category: Education
Created by: SingleWriter
Number of Blossarys: 3
Call option is a right given to the holder of the asset where he can buy a predetermined quantity of the asset in future. This purchase has to be made at a price that is determined today. It must be ...
Put option is the right given to the holder of the asset where he can sell a certain quantity of an asset some time in future. This sale has to be made at a price that is predetermined, or decided in ...
Exercising an option is a term that is used when an option is exercised. This option is included in the contract, and when this option is brought in motion, or an act of buy of sell is made in ...
Strike price, also referred to as an exercise price is the price that is mentioned in the option contract. This is the price at which an asset is purchased or sold at a future date when the option is ...
Expiry is basically the date where an option is matured. It is also sometimes called the maturity date of an option, or an expiry date. This date is also mentioned in the contract of the option in ...
European options are those special kinds of options that are mostly used in the region of Europe. The special characteristic of these types of option is that they can only be exercised when an option ...
American options are usually the kinds of options that are used all over America and are also used dominantly all over the world. These options have an expiry date mentioned in the contract and it ...