Option/Definition: Difference between revisions

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imported>Nick Gardner
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imported>Alexander Wiebel
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Revision as of 08:08, 23 May 2008

A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated price (termed the "exercise price") and at a stipulated time. An option to buy is called a "call option" and an option to sell is called a "put option".