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Title: Options

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Subject: Business
Author:
Date: October 21, 2000
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Grade:
Length: 6 / 1602
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Essay text:

The investor that purchases a put option is said to long put position. The investor that can earn income buy selling a put is said to be in a short put position. The people that buy options are called holders where those that sell options are called writers...

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The holder of a call has purchased the right to exercise a call. Put holders have purchased the right to sell the underlying asset at the locked price. However, neither the call holders nor put holders have an obligation to exercise their rights on the option...

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