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Terms connected to : Stock Markets
The options are exercised for buying and selling of: Shares and value linked Index(s)
Call Option is Excercised by the: Prospective buyer of a Stock (on Bull market expectations)
Put Option is Exercised bythe: Prospective Seller of a Stock (on Bear market expectations)
There will be a strike price : The maximum buying price-for call option, Minimum selling price: Put option.
A date is predetermined to terminate/withdraw the option called: termination date for buyer as also the seller
A call option is one which gives the right to the buyer to exercise his buying option/or withdraw from the option contract before the termination date. i.e. if bull market price advantage is there he will exercise his option to buy.
To the contrary a Put option is one which gives the right to exercise selling option/or with from the option contract before the termination date. i.e. to take the bear market advantage he will exercise his option to sell.
In Both options Buyer and seller can take advantage of the future situation of the Stock Market by minimising the risk to the base minimum level.
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