Course 3 - Options

Question 1

Financial Option

Answer 1

A contract that gives the right (but not obligation) to purchase or sell (Call or put option) an asset at a fixed price (Strike price) as some future date

Question 2

Strike price?

Answer 2

In a financial option, the strike price is the fixed price of an asset

Question 3

Call option

Answer 3

Financial option that gives owner the right to buy an asset

Question 4

Put option

Answer 4

Financial option that gives the owner the right to sell an asset

Question 5

What is synonyme of “option writter”?

Answer 5

Writer = seller. Is the seller of the option