Difference between revisions of "Financial option"
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According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
:[[Financial option|Option]]. A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time. | :[[Financial option|Option]]. A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time. | ||
+ | According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]], | ||
+ | :[[Option]]. A contract that gives its holder the right to buy (or sell) an asset at a predetermined price within a specified period of time. | ||
==Related concepts== | ==Related concepts== |
Latest revision as of 00:52, 2 November 2019
Financial option (or, simply, option) is a contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Option. A contract that gives its holder the right to buy or sell an asset at some predetermined price within a specified period of time.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Option. A contract that gives its holder the right to buy (or sell) an asset at a predetermined price within a specified period of time.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.