option
gives the holder the right to buy or sell an underlying asset at a fixed price over a limited period of time
strike price
the fixed price the holder is allowed to buy or sell an underlying stock price at
derivative securities
securities that derive their value from the price of some other underlying asset
option premium
the price than an investor pays to buy an option
option writer
the individual that sells the option in the market, so they are entitled to receive the price paid
expiration date
specifies the life of the option, just as the maturity date indicates the life of a bond; specifies the length of the contract between the holder and the writer of the option
option chain
a listing of all options on an underlying asset for a give expiration period
intrinsic value
represents the gross amount of money than an investor would receive if he chose to exercise a call option
option
gives the holder the right to buy or sell an underlying asset at a fixed price over a limited period of time
strike price
the fixed price the holder is allowed to buy or sell an underlying stock price at
derivative securities
securities that derive their value from the price of some other underlying asset
option premium
the price than an investor pays to buy an option
option writer
the individual that sells the option in the market, so they are entitled to receive the price paid
expiration date
specifies the life of the option, just as the maturity date indicates the life of a bond; specifies the length of the contract between the holder and the writer of the option
option chain
a listing of all options on an underlying asset for a give expiration period
intrinsic value
represents the gross amount of money than an investor would receive if he chose to exercise a call option