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15 Cards in this Set
- Front
- Back
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Option
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The right to buy or sell something at a specified price within a specified time period
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expiration date
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The date by which an option must be exercised
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Call Option
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An option sold by an individual that entitles the buyer to purchase stock at a specified price within a specified period
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Put Option
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an option to sell a stock at a specified price within a specified time period
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intrinsic value
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what the option is worth as stock. stirck price - stock price
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exercise (strick ) price
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The price at which the investor may buy or sell the stock through the option
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Premium
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The market price of the option
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Leverage
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magnification of the potential return on an investment
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time premium
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the amount by which an option price exceeds the option's intrinsic value
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covered option writing
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Selling an option for which the seller owns the securities
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Naked Option writing
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The selling of an option without owning the underlying security
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Open Interest
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Number of contracts with a specified strik price and expiration date on a particular stock
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stock index options
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Rights to buy and sell based on an aggregate measure of stock prices.
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Warrant
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An option issued by a company to buy its stock at a specified price within a specified time period
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Right
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An option given to stockholders to buy additional shares at a specified price during a specified time period before the offer is made to the general public
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