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
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
