Options
From Bogleheads
Options
- An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.
- from [Investopedia]
An option can only be exercised before the expiry date if it's an American-style option. European-style options can only be exercised on the expiry date (somewhat more like futures in that respect).
Links
- Options Basics: What Are Options?, on Investopedia. Calls and puts are described here.
- Definitions of options on Google
How to Cite
You can link to this page from the Bogleheads Forum by copying and pasting the following text into your forum posting:
Please see [url=http://www.bogleheads.org/wiki/Options]Options[/url] on the [url=http://www.bogleheads.org/wiki/Main_Page]Bogleheads Wiki[/url].
| Notice something that needs correcting? Notify a wiki editor or become a wiki editor and fix it yourself! |
|---|
