Glossary

Stock option

A type of derivative which gives the holder the right to buy or sell a certain number of shares

A type of derivative which gives the holder the right to buy (Buy option/Call) or sell (Sell option/Put) a certain number of shares at an agreed-upon price (exercise price) within a given period of time or on a particular date.

Stock options are classified as forwards, they are traded e.g. on the international derivatives exchange Eurex . The person or institution that sells an option is also called the option writer.

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