Options Flashcards
1
Q
Call Option
A
A contract that gives the holder the right (not obligation) to buy an
underlying asset at a pre-specified price before, or on, a given expiry date
2
Q
Long Put:
A
buying a put
3
Q
Short put:
A
selling put
4
Q
Put Option:
A
A contract that gives the holder the right (not obligation) to sell an
underlying asset at a pre-specified price before, or on, a given expiry date
5
Q
Long Call:
A
Buying a call
6
Q
Short Call:
A
Selling a call
7
Q
Call up to buy, Put out to
A
sell.
8
Q
Option Price/Premium
A
Amount that the buyer of an option pays for the right it gives
9
Q
Strike/Exercise Price
A
This is the pre-specified price that the underlying asset will be
bought or sold at
