Financial option

From CNM Wiki
Jump to: navigation, search

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

Related lectures