Option: Difference between revisions
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imported>Andrew Fleisher (initial) |
imported>David E. Volk No edit summary |
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An '''option''' is the right, but not the obligation, to buy or sell something. | An '''option''' is the right, but not the obligation, to buy or sell something. | ||
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Revision as of 14:15, 27 December 2007
An option is the right, but not the obligation, to buy or sell something.
Call? Put?
call def
put def
Why use an option
listed shares
currency
unlisted shares
real estate property - arm-length - upon death
other
American -v- European
American def
European def
who sells options
exchange-traded
company
anyone else
Guarantees an option will be fulfilled.
Option costs
For listed securities: Black . . . model
other: