2007-01-07 09:03:54 · 4 answers · asked by Winkytreats 2 in Business & Finance ➔ Investing
Simply put, options are a right to buy (or sell) a predetermined number of share, at a predetermined price, by a predetermined time.
So, for example, AAPL stock is at approx. $96.
You can buy an option to buy/sell that stock at 80, 85, 90, 95, or whatever.
You can have the option to buy/sell that stock by a certain time in Jan, Feb, Mar, etc.
The more time in the option, the more expensive. The more volatile the stock, the more expensive the option, and so on.
Hope that helps!
2007-01-10 09:50:47 · answer #1 · answered by Yada Yada Yada 7 · 1⤊ 0⤋
Options can mean:
1) part of an executive's pay package (in this case it means the chance to buy the stock at a below the market price)
2) contracts to buy/sell stock at a certain price.
2007-01-10 21:50:59 · answer #2 · answered by ckm1956 7 · 0⤊ 0⤋
you can buy the right to buy or sell a stock at a future date and price, if you think the stock will go up you can buy the right to purchase the shares at 10 bucks,even if the price is up to 20
(just an example)
2007-01-07 17:18:42 · answer #3 · answered by swenjj 4 · 0⤊ 0⤋
They are contracts to buy or sell the underlying stock at a fixed price. The farther out, the more expensive the contract.
2007-01-07 17:55:14 · answer #4 · answered by Anonymous · 0⤊ 0⤋