Options Flashcards
What are options?
Value of an underlying security such as a stock
Value of an underlying security such as a stock
What are options?
What does an options contract give?
An investor the opportunity to buy or sell an asset at a specific price while contract is in effect
An investor the opportunity to buy or sell an asset at a specific price while contract is in effect
What does an options contract give?
What do investors not have to do with an asset?
Investors don’t have to buy or sell the asset
What do buyers usually pay?
A premium for options contracts, reflects 100 shares of the underlying asset
A premium for options contracts, reflects 100 shares of the underlying asset
What do buyers usually pay?
What do premiums represent?
The asset’s strike price
The asset’s strike price
What do premiums represent?
What is the asset’s strike price?
The rate to buy or sell it until the contract’s expiration date
The rate to buy or sell it until the contract’s expiration date
What is the asset’s strike price?
What is a call option?
An offer to buy a stock at the strike price before agreement expires
An offer to buy a stock at the strike price before agreement expires
What is a call option?
What is a put option?
An offer to sell a stock at a specific price
An offer to sell a stock at a specific price
What is a put option?
