![]() ![]() When the buyer of a long option exercises the contract, the seller of a short option is "assigned", and is obligated to act. ![]() An option that gives you the right to buy is called a “call,” whereas a contract that gives you the right to sell is called a "put." Conversely, a short option is a contract that obligates the seller to either buy or sell the underlying security at a specific price, through a specific date. There is no obligation to buy or sell in the contract, but simply the right to “exercise” the contract, if the buyer decides to do so. Account Types & Investment Products OverviewĪ long option is a contract that gives the buyer the right to buy or sell the underlying security or commodity at a specific date and price.Contribution and Eligibility Calculator.
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