Showing posts with label Basic. Show all posts
Showing posts with label Basic. Show all posts

Friday, August 22, 2008

What Is Options

A formal contract which give the holder right (but not obligation) to buy or sell a certain quantity of an underlying asset at a certain price within a specific period of time

Options

Call Options
Call options give the right (but not the obligation) to BUY the underlying asset / index at a specific price and within a specific time period

Put Options
Call options give the right (but not the obligation) to SELL the underlying asset / index at a specific price and within a specific time period