Options have a unique set of terminology. Define the following terms: (6) Option price

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter20: Financing With Derivatives
Section: Chapter Questions
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Options have a unique set of terminology. Define the following terms: (6) Option price

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I. Meaning

Options are referred as the derivative based financial instruments which indicates the value of an underlying asset such as stocks and commodities. It is a contract where buyer gets right to buy or sell based on contract type hold by buyer. Options are traded through retail brokers and online platforms.

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