What Is an Option Contract?
FINRA calls an option a derivative: a right, not an obligation.
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1.What does an option give its buyer?
FINRA calls an option a derivative: a right, not an obligation.
2.What is a call, and what is a put?
In the US, one standard stock option contract covers 100 shares.
3.Marge pays 50 for the right to buy a 500 bike. What is the 50 called, and is it refundable?
The 500 is the strike price and the 30 days end on the expiration date.
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Sources (2)
- FINRA: Options (Anlegerinformation)
- Eigene Rechnung: Leo
Education only. Not financial advice.