Option/Definition

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< Option
Revision as of 09:08, 23 May 2008 by imported>Alexander Wiebel (Template:Def Option moved to Option/Definition: Moving_definition)
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A right, but not an obligation, to buy (or to sell) an asset, usually at a stipulated price (termed the "exercise price") and at a stipulated time. An option to buy is called a "call option" and an option to sell is called a "put option".