Describing a call or put option in which the exercise price is the same (or very nearly the same) as the current market price of the underlying asset.
A grantor is an entity, often an individual or trustee, that transfers, or 'grants,' assets or rights to another party; in the context of investments and law.
A Guarantee Letter is a document issued by a commercial bank that ensures payment of the exercise price of a client's put option if or when an assignment notice is presented to the option seller (writer).
A listed option refers to a put or call option that has been authorized for trading on an exchange, also known as an exchange-traded option. These options feature standardized terms and are regulated by a governing body, ensuring fair and transparent trading.
An option is a financial instrument that gives the holder the right, but not the obligation, to buy or sell an asset at a predetermined price before or at the expiration date.
An option holder is someone who has bought a call or put option but has not yet exercised or sold it. Call option holders want the price of the underlying security to rise, while put option holders want it to fall.
Premium income refers to the income received by an investor who sells a put option or a call option. This income serves as compensation for the risk taken by writing the options.
A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.
The phrase 'Put to Seller' is used when a put option is exercised. The option writer is obligated to buy the underlying shares at the agreed-upon price.
A stock option is a financial instrument that gives the holder the right to buy or sell a company's stock at a predetermined price within a specified timeframe. It can be used both as an investment tool and as an employee incentive.
The strike price, also known as the exercise price, is the predetermined price at which the owner of an option can buy or sell the underlying asset before or at the expiration date.
A writer in the context of finance is a person who sells option contracts, including both put and call options, in various financial markets.
