Börsenlexikon: Option

An option is a legally binding contract. The option specifies the price (strike price) at which the holder of the option can buy the underlying asset from the seller of the option (call option), or the price at which he can sell the underlying asset (put option). The option always gives its buyer (long position) the right, but does not oblige him to carry out this trade. In the option, a share, commodity or other asset (underlying asset) is clearly specified and described. The last thing to be determined is how long the option is valid, i.e. on which day the option expires (expiration date).

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