Meaning OPTION: Gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date. Investors, not companies, issue options. Buyers of call options bet that a stock will be worth more than the price set by the option (the strike price), plus the price they pay for the option itself. Buyers of put options bet that the stock's price will drop below the price set by the option. An option is part of a class of securities called derivatives, which means these securities derive their value from the worth of an underlying investment
More terms such as Option in Dictionary O.
- Definition Out-Of-The-Money Option:
- Examples out of the money if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is option definition.
- Definition Optimum Capacity:
- Examples The amount of manufacturing output that creates the lowest cost per unit option explain.
- Definition Opinion Shopping:
- Examples Attempts by a corporation to attain reporting objectives by following questionable accounting principles, with the help of an auditor willing to sanction the practices. Prohibited by the SEC option what is.
- Definition Out There:
- Examples of general equities. Indication gained from their trading and inquiry activity that buyers and/or (more often) sellers are in the market and should be found to get their order. Feels like IBM is &# option meaning.
- Definition Optimal Contract:
- Examples The contract that balances the three types of agency costs (contracting, monitoring, and misbehavior) against one another to minimize the total cost option abbreviation.
