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Option

Definition: Right to purchase (call) or sell (put) a fixed amount of stock at a specified price and within a certain time limit. Definition: [crh] Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price Definition: on or before a given date. Investors, not companies, issue options. Buyers of call optioDefinition: ns bet that a stock will be worth more than the price set by the option (the strike price), plus the price they Definition: pay for the option itself. Buyers of put options bet that the stock's price will drop below the price set by the option. An option is part of a Definition: class of securities called derivatives, which means these securities derive their value from the worth of an Definition: REF="/?rd=underlying">underlying investment.

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