Difference between revisions of "Financial option"

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Revision as of 21:35, 27 October 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.

Related concepts

Related lectures