Describe the most common types of stock options and their characteristics.© BrainMass Inc. brainmass.com March 21, 2019, 9:50 pm ad1c9bdddf
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 ...
This solution describes the most common types of stock options and their characteristics.