COMM 308 Chapter 24 & 25: CH 24 & 25

• School: Concordia University
• Department: Commerce
• Course: COMM 308
• Professor: Kaveh Moradi

Document Summary

An option contract is an agreement that gives the owner the right but not the obligation to buy or sell (depending on the option type) some asset at a specified price for a specified time. Option contract an agreement that gives the owner the right, not the obligation, to buy or sell a specific asset at a specific price for a set period of time. Options come in 2 flavors: puts & calls. The owner of a call option has the right, but not the obligation, to buy an underlying asset at a fixed price called the strike price or exercise price for a specified time. The owner of a put option has the right, but not the obligation, to sell an underlying asset at a fixed price for a specified time. Call option an option that gives the owner the right, but not the obligation, to buy an asset.