Term of the Day option 1. Contract to keep an offer open for a fixed period during which the offeror cannot withdraw the offer. 2. Formal contract between a seller (the optioner) and a buyer (the optionee) the right (but not the obligation) to buy-and-sell (or to buy-or-sell) a specific property or a fixed-quantity of a commodity, currency, or security, at a fixed price (called exercise price) on or up to a fixed date (called expiration date). Optionee pays down only a fraction (called premium or option money) of the full value of the contract, thus obtaining an investment leverage. An option to buy (called call option) is purchased when prices are expected to rise, an option to sell (called put option) when prices are expected to fall, and an option to buy-or-sell ... 3. Employee stock option where key employees are ...
Posted on: Thu, 11 Jul 2013 06:22:48 +0000