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Derivatives

Equity Options

They give the holder the right, but not the obligation, to buy or sell the underlying shares at a specific price on or before the expiration date.

In the world of finance, there exists a powerful tool known as equity options. These derivatives are based on stocks or shares, and grant the holder the power to buy or sell the underlying assets at a predetermined price on or before a specified date. This unique feature of options provides flexibility and opportunity for investors to mitigate risk and potentially earn profits.

Related terms

Long Hedge (Futures)

Understand the meaning and definition of Long Hedge (Futures) in the context of stock market, trading, and investments.

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American-Style Option

Understand the meaning and definition of American-Style Option in the context of stock market, trading, and investments.

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European Options

Understand the meaning and definition of European Options in the context of stock market, trading, and investments.

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Call Option

Understand the meaning and definition of Call Option in the context of stock market, trading, and investments.

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Exercise

Understand the meaning and definition of Exercise in the context of stock market, trading, and investments.

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Covered Call Option Writing

Understand the meaning and definition of Covered Call Option Writing in the context of stock market, trading, and investments.

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