Explore BrainMass
Share

Describe the most common types of stock options and their ch

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Describe the most common types of stock options and their characteristics.

© BrainMass Inc. brainmass.com March 21, 2019, 9:50 pm ad1c9bdddf
https://brainmass.com/business/options/describe-the-most-common-types-of-stock-options-and-their-ch-393829

Solution Preview

By definition, stock option is a contract which gives its holder the right, but not an obligation, to buy or sell shares of the underlying security at a given price within a specific period or on a specific date. Stock Options are very versatile and are very attractive to many investors. There two types of options, calls and puts. A call option enables the holder to buy the security while a put option enables the holder to sell the security.

Described below are ...

Solution Summary

This solution describes the most common types of stock options and their characteristics.

$2.19